Samsung is spending the money to increase production of semiconductors for both mobile phones and other chips.
The company is still struggling to cope with the debacle of the Note 7 but this announcement is likely little to do with that disaster.
Last week Samsung said its CapEx for 2016 would reach $24 billion.
In addition to a multitude of other projects, Samsung is a major player in the memory chip business.
It’s unclear how the $1 billion earmarked for the Austin, Texas plant will be spent, but it’s possible that it intends to open an additional line or two in the fab.