Samsung Electronics is closing in on a $17 billion deal to build a new chip factory in Texas.
Reuters sources say it's chosen a site in Williamson County, just outside Austin.
The South Korean giant wouldn't confirm that, saying only that it continues to study multiple locations.
But one source said the site near Austin is the favourite, due to the subsidies on offer and good supplies of electricity and water.
The factory will make advanced logic chips.
In previous filings Samsung has said it will create 1,800 jobs.
The firm has said it intends to start construction in January, with a plant up and running in 2024.
Washington has made semiconductor supplies a strategic priority amid a global shortage of chips.
Analysts say that will make Samsung keen to have a stronger presence on the ground in the U.S.
Among contract chip makers, it ranks second behind only Taiwan's TSMC.