Samsung already has a strong presence in Texas. Its Austin chip plant has been operational for well over two decades now. Six months ago, the company announced a new factory in Taylor where it will manufacture its most advanced computer chips. Costing a whopping $17 billion, it is the Korean firm’s largest-ever single investment in the US. It is also the largest direct foreign investment in Texas history. Before settling on Taylor, Samsung explored several other sites within Texas as well as other states, including New York and Arizona. The company eventually chose Taylor where it received a slew of incentives in the form of tax breaks. In turn, the Korean conglomerate would bring economic development to the state with thousands of new jobs. Samsung may now be hoping the Taylor and Manor school districts to consider its credibility as a big investor for Chapter 313 incentives. According to the Austin Business Journal, each school district will separately evaluate the applications today, May 24. If approved, and the company does proceed with the plan, it could become an even more significant employer in Texas. It will also be another huge boost for Joe Biden’s ambition to create an independent semiconductor supply chain in the US.
Samsung suggests it’s a long-term plan
The Chapter 313 incentive program is set to expire later this year. The Texas government has reportedly asked companies to file their application before June. Several big names are rushing in to try and secure some incentive deals for themselves. Samsung may also be joining the race for potential tax breaks and may not have any immediate plans to expand its chip manufacturing facilities in Texas. It’s just laying the groundwork for potential expansion in the future. Perhaps a company executive has already confirmed that. “While we do not have specific plans to build at this time, the Chapter 313 application process is part of our long-term planning to evaluate the viability of potentially building additional fabrication plants in the US,” said Michele Glaze, director of communications at Samsung Austin Semiconductor LLC, the company’s local subsidiary. Nonetheless, both school districts in Texas will discuss the scope of the potential expansion, location, and various other factors with Samsung before deciding whether to offer any tax breaks to the company. We expect to hear more on this development in the coming months. We will keep you updated accordingly.
