Samsung to invest $17bn in chip plant in Texas

South Korean technology giant Samsung has chosen a site close to the city of Taylor in Texas for its new $17bn computer chip plant_ amid a global shortage of semiconductors.

It is the biggest-ever US investment by Samsung.

The plant is expected to create 2_000 technology industry jobs_ with construction starting early next year.

Samsung_ like several of its rivals_ is racing to expand chip making in the US to tackle supply chain issues.

"With greater manufacturing capacity_ we will be able to better serve the needs of our customers and contribute to the stability of the global semiconductor supply chain_" Kinam Kim_ chief executive of Samsung electronics device solutions said.

The plant is expected to be operational by the second half of 2024.

It comes as US President Joe Biden has been pushing chip giants to increase their production in the US.

White House officials said the new facility would help "protect our supply chains_ revitalise our manufacturing base and create good jobs".

"Increasing domestic production of semiconductor chips is critical for our national and economic security_" US Commerce Secretary Gina Raimondo said separately.

The Republican governor of Texas_ Greg Abbott_ tweeted "Welcome to Texas_ Samsung!"_ as he posted photographs of an event to announce the plan.

Separately_ a statement from the governor's office said the company would get a $27m grant for creating jobs in the state.

Chips made at the new facility will be used in a range of technologies including mobile_ 5G_ high-performance computing and artificial intelligence.

Samsung is one of the world's largest chipmakers with more than 20_000 employees across the US.

The company said that the latest announcement takes its total investment in the world's biggest economy to $47bn.