Samsung has chosen a site close to the city of Taylor in Texas for its new $17bn (£12.7bn) computer chip plant, amid a global shortage of semiconductors.
It is the South Korean electronics giant’s biggest-ever US investment.
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.
