samsung
Photograph by Getty Images

Samsung Plans $1 Billion Investment in U.S. Chip Production

Nov 01, 2016

Samsung Electronics said on Tuesday it planned to invest more than $1 billion by the end of June 2017 to boost production of system chips at its Austin, Texas, facilities in the United States to meet growing demand.

The South Korean firm, the world's second-largest chipmaker behind Intel (intc), said in a statement that its investment would boost output of chips for mobile and other electronics devices from its existing facilities in the city.

The investment comes after Samsung (ssnlf) said last week its capital expenditure for 2016 would rise to a record 27 trillion won ($24 billion), with 13.2 trillion won earmarked for its semiconductor business.

While most of Samsung's semiconductor profits come from memory chip sales, it has been trying to boost earnings from other products including its own Exynos mobile processors and contract manufacturing deals with clients such as Qualcomm and Nvidia.

Samsung did not give further details for its investment plans in Austin, such as how much production capacity would be added.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions