Samsung recently started working on its $17 billion semiconductor chip plant in Texas. However, the company's investment plans don't end there. The South Korean firm reportedly has plans to build as many as 11 chip factories in the state over the next ten years.
A new report from Austin American Statesman claims that Samsung could invest around $200 billion in Texas in the US to build 11 semiconductor chip factories. According to documents filed with the state, the company could create over 10,000 jobs if it goes with all its plans. The applications for investments were filed yesterday with Texas' comptroller website.
Two of those 11 applications are for sites in Austin, where Samsung could invest around $24.5 billion and create 1,800 jobs. The nine remaining plants could come up in Taylor, where the company plans to invest about $167.6 billion and employ around 8,200 people.
The first of these 11 chip plants could start functioning in 2034
If everything goes according to Samsung's proposed plan, the first of these eleven plants will begin in 2034, a decade from now. Two of those chip plants are projected to start sometime in 2042. Since the company would become among the most prominent investors in the state, it could receive substantial tax breaks to the tune of $4.8 billion.
We have to understand that none of these plans are finalized and approved. If things go south, the South Korean firm could shelve plans for some of those chip plants or build them somewhere else. Michele Glaze, Samsung's spokesperson, said filing these applications is part of long-term planning for the company.
Ed Latson, Executive Director of the Austin Regional Manufacturers Association, said, “Samsung's commitment and investment in this area are in a class of their own. We're talking about the largest foreign investment in the United States right here in our region. It's going have a dramatic impact on the economic development and growth of Central Texas.”
Texas' Chapter 313 is expiring soon, and it could be why Samsung has filed several applications
To remind you, Samsung has been operating its chip plant in Texas for over 25 years, so it is not new to the state. Texas' Chapter 313 incentives agreements allow school districts to offer significant property tax breaks to companies that create new jobs. However, the Chapter 313 program is expiring soon, and that's why companies are in a rush to file new applications.
Samsung is not the only semiconductor company that's investing in the US. With the ongoing tensions between China and the west, many chip firms, including world leader TSMC, are in the process of investing heavily in the US. Samsung has grand plans to overtake TSMC in the contract chip manufacturing business, but only time will tell if it will be successful.
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