Samsung Electronics to invest more than $1 billion in US chip production

The FAA implemented a travel ban on the Samsung Galaxy Note 7 after a replacement model of the troubled smartphone began smoking inside a Southwest Airlines flight last month

Samsung Electronics Co Ltd said its investment would boost output of chips for mobile and other electronics devices from its existing facilities in the city.

"This means we're going to be procuring a lot more equipment, installing tools into our "fab" and amping up our wafer production", said Catherine Morse, Samsung Spokesperson.

Samsung has announced that it will increase its investment in Austin, Texas in 2017 by $1 billion. Samsung's semiconductor company was created in 1997 and since then the company has invested over $16 billion into its facility.

The company employs almost 3,000 employees at its Austin complex, Samsung said. The manufacturing plant produces chips for mobile phones, tablets and other electronic devices.

The money will be spent on new manufacturing equipment and construction costs, as well as hiring hundreds of new engineers and technicians to run the equipment, the Statesman reports.

"They're bullish on the city, they're bringing new jobs and new capital investment".

Mayor Adler welcomed the announcement, talking about Samsung's contributions outside of its regular business operations. Samsung said almost half of that figure would be used to boost its semiconductor business. "As a company that the community and state partnered with to relocate here several years ago, they have far exceeded expectations", said Mike Rollins, President, Austin Chamber of Commerce. According to an Impact Data Source Economic Impact Study, SAS added $3.6 billion into the regional economy of central Texas in 2015.

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