Samsung may build US$200B of chip facilities in Texas

Samsung, the electronics giant and the leading maker of memory chips is considering spending US$200B on 11 new chip facilities in Texas:

While the first chip facility likely wouldn’t be in operation until 2034 - we think it is indicative of growing impetus behind the US localising chip manufacturing.

We think these moves should also interact with the broader trend of increased demand for helium from a rapidly growing semiconductor industry.

That additional chip manufacturing will need a lot of helium - helium that we’re hoping our Investments in Grand Gulf Energy (ASX:GGE) and Noble Helium (ASX:NHE) can produce and sell.

GGE recently proved it has found commercially viable grades of helium in Utah, USA.

Our other helium Investment, NHE, is pursuing a resource that if proven out, has the potential to be the world’s third largest helium reserve behind the nations USA and Qatar, and the largest ever reserve held by a single company.

The news from Samsung comes at a time when the US is looking to pass the CHIPS Act which would allocate around US$50B to domestic chip production - the Biden administration has pressed Congress to pass the bill before an August recess.

What’s next for GGE and NHE? GGE will re-enter Jesse #1A to test for flow rates in Q3-2022. Meanwhile NHE is likely to commence an airborne gravity gradiometry survey in Tanzania soon, ahead of a 3D seismic survey to firm up targets for a maiden drill campaign in Q3 2023.