Samsung Seeks Tax Breaks On Future Chip Factories In Texas

The US state of Texas could be in line for more chip factories, after Samsung Electronics began the paperwork for more facilities.

Reuters reported that the South Korean electronics giant has begun applications for tax breaks for a total of 11 potential chip manufacturing facilities in Texas.

Samsung, it should be remembered, announced last November it would build a new $17bn (£12.7bn) semiconductor manufacturing factory in Taylor, Texas.

Texas factories

The Taylor facility is expected to create 2,000 high-tech jobs and production seen starting in the second half of 2024.

The decision to opt for Taylor in Texas came after Samsung considered four locations in Arizona, Texas and New York, but in the end opted for Texas.

Now Texas Governor Greg Abbott celebrated Samsung’s seeking to potentially increase its historic investment in Texas to include 11 new semiconductor manufacturing facilities in Taylor and Austin.

“Close partnerships with companies like Samsung – who recognize the boundless possibilities Texas has to offer – are bringing greater opportunities to Texans, and this potential investment will bring billions of additional capital to continue growing our world-class business climate and diverse, highly-skilled workforce,” said Governor Abbot.

“These new facilities solidify the Lone Star State as the nation’s leader in the semiconductor industry, and I thank Samsung for increasing their investment in the hardworking people of Central Texas,” he said.

The Governor cited a major factor for this potential investment by Samsung is the passage of the Creating Helpful Incentives to Produce Semiconductors for America (CHIPS) Act, which is currently under consideration by the United States Congress.

Tax breaks

Reuters reported that Samsung’s applications, filed with school districts in Texas where Samsung has an existing chip plant or is in the process of building a new plant, are part of the state’s Chapter 313 incentives programme.

Chapter 313 reportedly provides property tax breaks, and is currently set to expire by end-2022 – meaning companies that want to lock in tax breaks under the programme will need to apply before the year’s end, no matter how initial its plans.

It should be noted that these applications are for potential factories, and nothing concentrate about constructing the additional facilities has been confirmed yet.

“We currently do not have specific plans to build at this time,” Samsung was quoted by Reuters as saying.

“However, the Chapter 313 applications to the State of Texas are part of a long-term planning process of Samsung to evaluate the viability of potentially building additional fabrication plants in the United States.”