Texas City Attempts To Lure Samsung's Bleeding Edge Chip Fab With Huge Tax Breaks
Samsung is one of many chip giants looking to expand its fab capacity, and it is eying locations within the United States. The South Korean company already has a fab located within Texas, so naturally, officials in that state are looking to strike gold again with Samsung's proposed $17 billion chip factory.
Taylor, Texas, hopes to be in the running as a potential site and is offering significant tax incentives to lure Samsung. According to Reuters, the city is proposing generous property tax grants over the next 30 years. The grants would be worth 92.5 percent of the assessed property tax value for the first ten years, diminishing to 85 percent during the final ten years.
The city also proposes that it will repay Samsung's development review costs in addition to other tax waivers. Taylor hopes to recoup these tax incentives thanks to an influx of new hires that the site will bring. According to Samsung, it's estimated that the fab will create 1,800 new jobs in the area.
"All sites are under consideration and each community is performing the appropriate due diligence to put themselves in the best position for this opportunity," said Samsung spokesperson Michele Glaze to the Austin Business Journal. "[The] actions by Williamson County and City of Taylor are part of their due diligence. We are honored to have such thoughtful consideration from all of the sites."
According to Glaze, Samsung has not yet decided on where to build its new chip fab. However, locations in Phoenix, Arizona, and upstate New York are also being scouted, according to multiple reports.
Samsung isn't the only company looking to further domestic semiconductor production efforts here in the United States. TSMC plans to build up to six advanced fabs stateside, and Intel is investing billions in fortifying its domestic chipmaking apparatus.