Tesla, Samsung microchip deal good news for Taylor

TAYLOR, Texas – The city of Taylor’s Samsung factory finally has a client. 

Tesla CEO Elon Musk announced on Monday that the U.S. automaker will work the South Korean tech giant on a new microchip deal worth $16.5 billion.

The move is a shot in the arm for Samsung, which has struggled to get it chip-making project off the ground in Taylor. 

What they’re saying:

City of Taylor Communications Director Daniel Seguin spoke to FOX 7 about the new deal.

“I think the world has realized that Taylor is the place to be,” Seguin said. “We have incredible opportunities when it comes to land availability and the quality of our land-available infrastructure.”

Seguin says Samsung’s investment will change the future of Taylor for years to come. 

“We really see Taylor as a community where you can live, work, and play in the near future, in stark contrast to what it has been for generations,” Seguin said. “It was just more of a bedroom community, and folks commuting to Austin for the higher paying jobs.” 

Dig deeper:

Back in October, Samsung delayed chip-making equipment deliveries from Dutch manufacturer ASML due to a lack of customers, but the new deal with Tesla marks a step in the right direction for both Samsung and Taylor.

“We’ve already seen some tremendous economic benefits from Samsung,” Seguin said. “We’re really excited to see what comes next.”

“A rising tide raises all ships,” Seguin added. “Taylor is not going to be the only one it benefits from.” 

Musk also added on X that he “will walk the line personally to accelerate the pace of progress.” 

What’s next:

Samsung tells the city it anticipates the creation of just under 2,000 direct jobs within the factory, with thousands more of indirect opportunities in construction, suppliers, and retail. 

Seguin says Samsung expects to have the equipment to manufacture the chips by the end of 2026.