Samsung considers Austin for $17 billion chip plant, eyeing tax breaks

Platform Industry: Samsung

Samsung Electronics is considering Austin, Texas, as one of the sites for a $17 billion chip plant that could create some 1,800 jobs, according to documents filed with state officials.

The South Korean tech giant is seeking combined tax abatements of $805.5 million over 20 years, according to the documents.

Samsung Electronics said in its filings that if Austin is selected, the company would break ground on the site in the second quarter of this year and that the plant will become operational in the third quarter of 2023.

“This project is highly competitive, and the company is looking at alternative sites in the US including Arizona and New York, as well as abroad in Korea…,” Samsung said in the documents, adding that it is taking into account access to talent, chip ecosystem and speed to market in its evaluation of the sites.

Samsung’s American customers for its contract manufacturing chip business include Tesla, Qualcomm and Nvidia.

Samsung’s filing said it plans to make “advanced logic devices,” meaning it would aim to make the smallest, fastest kinds of computing chips for customers. The company has an existing chip plant in Austin that makes computing chips.

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In a statement to journalists at our partner news agency Reuters, Samsung Electronics confirmed it is considering expanding its chip facilities, but no decision has been made yet.

The documents say the project would involve building out 7 million square feet of new space on a 640-acre site that the company already owns.

US Senate Majority Leader Chuck Schumer, called on Samsung to put a factory in his home state of New York, pledging to work to secure federal incentives for the facility, which he said are key for US to compete with China in boosting local chip production.

While Intel makes such chips for itself in the US, most contract manufacturers who make them for outside clients, such as TSMC and Samsung, maintain most of their facilities in Taiwan and Korea, respectively.

TSMC, which counts Apple among its major customers, last year disclosed plans for a $12 billion chip plant in Arizona expected to come online in 2024.

The filings with Texas officials were earlier reported by the Austin American-Statesman newspaper.

The team at Platform Executive hope you have enjoyed the ‘Samsung considers Austin for $17 billion chip plant, eyeing tax breaks‘ article. Translation from English to other languages via Google Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Stephen Nellis and Hyujnoo Jin in San Francisco. Editing by Aurora Ellis.

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