Samsung Supplier Expands Central Texas Investment With New $85.8M Semiconductor Facility

The company, which is a major supplier to Samsung, is expanding its investment in Central Texas by planning to build an additional manufacturing facility worth $85.8 million in Taylor, thus enhancing Taylor’s increasing role in the U.S. semiconductor industry.

Soulbrain Texas LLC, a semiconductor materials company from South Korea, recently filed plans for the new facility with the Texas Department of Licensing and Regulation. This project forms part of the company’s wider initiative to set up a new manufacturing operation and its headquarters in Taylor, which is situated northeast of Austin.

The most recent investment follows on the back of Texas giving financial assistance to Soulbrain for yet another major semiconductor project in the city. In June, Governor Greg Abbott announced that the company would be awarded an $11.6 million grant by the Texas Semiconductor Innovation Fund, or TSIF, to help with its planned U.S. manufacturing facility and headquarters.

The wider Taylor development by Soulbrain involves an estimated investment of $175 million, part of which is intended to support Samsung’s semiconductor manufacturing activities in Central Texas. Samsung has itself made a huge investment in Taylor and thus helped turn the area into an increasingly important centre for semiconductor manufacturing.

Soulbrain has a specialty in the materials employed in the process of producing semiconductors; at its plant in Taylor it intends to manufacture high-selectivity, high-purity phosphoric acid, a chemical essential for the cleaning and etching of semiconductor wafers.

The material will in the end help in the production of the chips manufactured by Samsung for a wide variety of electronics, such as smartphones, tablets, computers and other devices.

According to the company’s plan, the first stage of the project should result in an annual production capacity of about 28,800 metric tons of high-purity phosphoric acid, and setting up domestic production of these specialized semiconductor materials could also serve to strengthen Samsung’s supply chain in the United States by decreasing its reliance on materials produced abroad.

The original plans of Soulbrain called for work on three phases of its Taylor facility, which has a floor area of about 60,000 square feet, to start in March 2025 and finish by October. The project seems, however, to have suffered delays.

A representative from City of Taylor has confirmed that Soulbrain has not yet started construction on its proposed facilities. The company has, however, already obtained an approved site plan and has submitted an application for an expedited building permit.

Physical construction can only start after both approvals have been obtained.

The “T-Project” is the name given to the company’s most recent regulatory submission, it being the same project name that was used in the documents relating to the earlier stages of the development at Soulbrain’s Taylor headquarters. This indicates that the latest proposal amounting to $85.8 million is linked to the company’s main manufacturing site rather than being part of a separate development.

The filing states that the new factory will cover about 37,495 square feet and will include the specialized engineering and manufacturing facilities needed for the production of semiconductor chemicals.

The facility is intended to be located at 140 Logistics Loop East in Taylor, which will place Soulbrain near Samsung’s growing semiconductor operations and enable the supplier to serve one of its major customers from within the same Central Texas manufacturing ecosystem.

The expansion by Soulbrain is yet another major contribution to the increasingly large network of semiconductor manufacturers, suppliers and technology companies that are investing in the area.

Texas has in recent years aimed at drawing semiconductor projects to the state by means of financial incentives and investments in infrastructure, especially since the United States is working to increase domestic chip production and to strengthen its semiconductor supply chains.

The Texas Semiconductor Innovation Fund is included in that initiative and gives financial assistance to companies which are investing in semiconductor manufacturing, research, and other related supply chain operations in the state.

For Taylor, Soulbrain’s investment further reinforces the small city’s change into a significant centre for technology and advanced manufacturing. The fact that Samsung is already there has drawn in suppliers and other related businesses to the area, providing opportunities for more industrial development and investment.

When the Soulbrain facilities have been completed, the company will have a manufacturing operation based in the United States which will enable it to supply the critical semiconductor materials near Samsung’s production facilities in Texas.

Even though there seem to be delays in the construction, the company’s regulatory filings, the approved site plan and the building permit application show that work on the project is going on.

The additional $85.8 million facility, combined with Soulbrain’s broader $175 million development and state financial support, represents another substantial investment in Central Texas’ rapidly expanding semiconductor industry.

Source: MySA
Author: Cristela Jones, Austin Trending Reporter
Original Link: https://www.mysanantonio.com/business/article/samsung-soulbrain-taylor-texas-22391193.php

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