Samsung Picks Taylor, Texas for Company's New $17 Billion Chip-Making Plant
Samsung Electronics Co. has been eyeing to build a $17 billion chip-making plant in Taylor, Texas, as the Biden administration pushes for an expansion of U.S. semiconductor production.
The news came from the people familiar with the matter, the Wallstreet Journal reported. Texas Governor Greg Abbott is reportedly set to make an "economic announcement" from the governor's mansion in Austin on Tuesday regarding the chip-making plant in the state.
Last September, Samsung denied that the decision was final, with the company saying that no decision has been made yet regarding the site for a potential expansion.
Samsung said in a statement that all sites are under consideration, according to a KVUE report. They added that each community was doing its part to make themselves placed in the best position for this opportunity.
In July, Samsung filed an application with the Texas comptroller's office for an incentives deal with Taylor Independent School District. The incentives deal allows Samsung to have a $314 million tax break over the next 10 years, as stated under the Chapter 313 agreement.
Other states have been competing for the Samsung chip-making plant facility, such as New York and Arizona. Austin has also been on the list of competing areas for the facility.
Once finalized, the construction for the six-million-square-foot facility is reportedly set to start as early as January 2022, with the production scheduled by the end of 2024.
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Samsung in Texas
The vice-chairman of Samsung visited North America, including the United States and Canada, and during the trip, a decision where to put the plant could have come, KXAN reported last week.
Samsung said the plant could manufacture 1,800 jobs with the tax break under the Chapter 313 agreement will play a big role in the decision.
However, Nathan Jensen, a government professor at the University of Texas at Austin, said Samsung is not obligated to create as many jobs as they say they're going to.
Meanwhile, Tesla Inc. said in October that it was moving its headquarters to Austin after its Chief Executive Elon Musk had moved to the Lone Star State.
Hewlett Packard Enterprises also announced its plans to move its headquarters to Texas, according to Investopedia. Joining Tesla's transfer of its headquarters to Texas is Oracle.
Oracle Spokesperson Deborah Hellinger said the move would position the company for growth while also providing their workers the flexibility about where and how they work.
Some of the transfer's reasons were high costing costs, tax rates, and stricter regulations in Silicon Valley. Texas and other states are being favored due to lower costs of living and more favorable taxes.
Thirty-five companies had relocated to or opened new facilities in Austin in the year 2020 alone, based on Austin Chamber of Commerce's data.
Laura Huffman, president and CEO of the Austin Chamber, said Austin, Texas has a lot of things about the community, citing great music scene and being an outdoors city.
Huffman added that 2020 has taught people and businesses that they have more choices regarding living locations.
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This article is owned by Latin Post.
Written by: Mary Webber
WATCH: Taylor Neighbors Await Decision on New Samsung Facility - From KVUE