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Procurement News

US sweetens Samsung’s giant Texas chip plant with $6.4bn

The US government has awarded Samsung $6.4bn to build extra chip fabrication facilities at the giant factory the Korean company is already building in Taylor, near Austin, Texas. In exchange, the South Korean company will invest $40bn of its own money in the expansion. The plan is to build a one-stop shop for semiconductors with research and development, design, fabrication and “packaging”, or adding the chip to a circuit board, The Washington Post reports. Commerce Secretary Gina Raimondo told reporters that the first fabrication plant would be “the size of 11 football fields”. Samsung revealed its plans for Taylor at the end of 2021 with a $17bn investment. Construction began in February 2022 and is due to finish this year. The White House estimates that building the plants will require 17,000 construction workers, slightly more than the town’s population of 16,267 as counted in the 2020 Census. When the complex is fully operating by 2030 it will employ some 4,500 employees, the White House added. “We’re saying for the first time ever, Samsung can conduct in the US core research and development, support the future and manufacturing at scale and advanced packaging all in Texas,” Secretary Raimondo said. Lael Brainard, the White House’s National Economic Adviser, said the return of leading-edge chip manufacturing to America was “a major new chapter in our semiconductor industry”. Officials also said the investment would improve the US’ national security, because Samsung had committed itself to making chips directly for the Department of Defence. The subsidy will be awarded under the Biden administration’s CHIPS and Science Act, a legislative package signed in August 2022 designed to incentivise domestic chip production. The Samsung subsidy follows a similar agreement with Taiwan Semiconductor Manufacturing Company in which the US provided $6.6bn in exchange for a $25bn investment. United States

Cambodia to start $1.7bn canal despite Vietnamese, US concerns

Cambodia will start work this year on a controversial plan to dig a 180km canal to link Phnom Penh to the sea, The Star newspaper reports. The Funan Techo canal, which is expected to cost $1.7bn, will link the capital to the country’s only deepwater port at Sihanoukville and a new port at Kampot. China Road and Bridge Corporation, a subsidiary of China Communications, will build it over four years. The project has raised concerns in America and Vietnam. Wesley Holzer, a public diplomacy officer at the US embassy in Phnom Penh, said the Cambodian people, along with people in neighbouring countries, would “benefit from transparency on any major undertaking with potential implications for regional water management, agricultural sustainability, and security”. Vietnam has expressed concern about the impact of the canal on the fragile ecology of the Mekong basin and is also reported to be concerned that it will allow Chinese navy ships to approach its territory. Cambodian officials have rejected these concerns, insisting that Cambodia’s constitution ensures its neutrality. Former Prime Minister Hun Sen, who stepped down last year and handed power to his son, commented last week that foreign observers were “fabricating” a claim that the canal “will further facilitate the Chinese navy near the Vietnamese border even when the canal is still under construction”. Cambodia

100 contractors visit Saudi Arabia’s Neom vying for future jobs

Representatives from more than 100 companies have attended a two-day forum in Saudi Arabia, held to brief bidders on the progress of Neom programme of construction projects, and the governing body’s plans for the future. The contractors and consultants came from Saudi Arabia, Asia, Europe, North America and North Africa to visit projects under construction, including The Line (pictured below), Trojena, Oxagon, and attend one-to-one meetings.Nadhmi Al-Nasr, Neom’s chief executive, said: “As we go into our busiest ever phase of development, the scale of opportunities across Neom is monumental. “With projects progressing fast across all parts of the region, we are committed to collaborating with globally renowned contractors to achieve the vision of Neom.” The Neom schemes are being built in the northwest of the kingdom. The schemes have a workforce of 140,000 people, which is expected to grow to more than 200,000 by 2025. Saudi Arabia

Cowi lands role on major Irish wind farm

Danish consulting engineer Cowi has won a contract to provide the front-end engineering design (FEED) and detailed foundation design for the proposed Codling Wind Park off the Wicklow coast in Ireland. The scheme is a 50:50 joint venture between EDF Renewables and Fred. Olsen Seawind. With an expected capacity of 1,300MW, it has the potential to supply over a million Irish homes with low-cost electricity and to save 1.7 million tonnes of carbon emissions every year. It secured its grid connection agreement in 2022 and was successful in Ireland’s first Offshore Renewable Energy Support Scheme in 2023. Cowi will design foundations for turbines and offshore substations. Ireland

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US sweetens Samsung’s giant Texas chip plant with $6.4bn

Cambodia to start $1.7bn canal despite Vietnamese, US concerns

100 contractors visit Saudi Arabia’s Neom vying for future jobs

Cowi lands role on major Irish wind farm

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