AUSTIN - Samsung Austin Semiconductor LLC announced Tuesday that the company plans on investing more than $1 billion in their Austin facility in the first half of 2017, adding new jobs to the area.
The company plans to use most of its one billion dollar investment on an advanced smart chip, called system-on-chip products.
"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.
The South Korean tech giant will increase the capacity of in its northeast Austin manufacturing plant. The manufacturing plant produces chips for mobile phones, tablets and other electronic devices.
Currently, Samsung employs 3,000 people in Austin, and most employees work in its manufacturing facility, known as the 'fab' or 'foundry.' Starting next year, the company will need hundreds of new manufacturing technicians and engineers to run all the new equipment.
"We have a great partnership with Austin Community College, and they're doing a lot of training of folks who can then take these middle-skilled jobs," said Morse.
KVUE's news partners at the Austin American-Statesman report that the investment comes after Samsung spent $4 billion in 2010 to upgrade the plant. The Statesman said this investment will cover new manufacturing equipment and construction costs as well as add hundreds of new jobs.
Austin Mayor Steve Adler talked about his visit with Samsung's leaders in South Korea over the past summer.
"They're bullish on the city, they're bringing new jobs and new capital investment. We need to make sure we have folks that live here that can be trained that can be able to take the new jobs that come to our city," he said.
Mayor Adler welcomed the announcement, talking about Samsung's contributions outside of its regular business operations.
"Samsung is so often a source of good news in Austin whether it’s about jobs, education, workforce development, housing or helping the homeless," Adler said in the company's statement. "Samsung is a great partner for Austin’s present, and this announcement tells us that they’ll be an even bigger part of our future.”
City leaders said the company's presence has also a created great trickle down effect to our local economy.
"As more people have good middle-income jobs, they're able to spend more with businesses here locally, thus creating more jobs in our local economy," said Mike Rollins, Austin Chamber of Commerce.
Samsung and the Austin Chamber of Commerce conducted a study last year that shows Samsung added $3.6 billion into Central Texas economy, directly and indirectly supporting more than 10,000 jobs total.