Samsung Electronics Co Ltd said on Wednesday it had picked Taylor, Texas as the location for a new $17 billion plant.
The plant would produce advanced chips for functions such as mobile, 5G, high-performance computing and artificial intelligence.
Samsung said that the plant would create 2,000 high-tech jobs with construction to begin in the first half of next year.
Production is due to start in the second half of 2024, the South Korean tech giant added.
The plant would also create at least 6,500 construction jobs, Texas Governor Greg Abbott said.
Samsung had also considered sites in Arizona and New York for the plant, which will be much bigger than its only other U.S. chip plant in Austin, Texas.
Samsung said it chose Texas based on factors such as infrastructure stability, government support and proximity to its existing plant.
Samsung is joining rivals TSMC and Intel in the race to expand chip contract manufacturing in the United States, where the sector is seen as an area of strategic competition with China.
U.S. President Joe Biden’s administration has promised billions of dollars in federal funding to boost chip manufacturing and research to ensure it has an edge over China in advanced technologies and to address shortages for critical industries like autos.