Samsung is forced to invest $25bn instead of $17bn to build new plant in Texas

Samsung will have to spend a lot more to set up a plant in the United States. The cost of construction will increase by almost one and a half times the original plan.

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Samsung has announced that it wants to build a new plant in Texas to serve customers in the semiconductor sector. The South Korean manufacturer's estimate was for $17bn to build the second facility. According to the new figures, the company will have to spend $25bn.

The $8 billion increase is due to higher construction costs. The U.S. government is prepared to provide $39 billion in subsidies over the next five years, but the Commerce Department expects the subsidy to cover no more than 15% of plant construction costs.

Samsung wants to complete the new facility by 2024 and start production in 2025. The plans are justified by the company's desire to claim tax credits on equipment purchases.

Source: Reuters