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Texas City To Offer Samsung Big Tax Breaks To Build $17bn Chip Plant

Taylor city is trying to attract Samsung to locate a huge new computer chip plant there, rather than Austin, or in two other states

Two cities in Texas are trying to get Samsung to build a new computer chip plant there. File photo by Reuters.

 

The city of Taylor, Texas – one of two locations in the state under consideration by Samsung Electronics for a $17 billion chip plant – plans to offer extensive property tax breaks if it is chosen by the South Korean tech giant.

Taylor is competing with Austin, Texas, to land the plant, which is expected to create about 1,800 new jobs. Samsung has also said it is looking at other potential sites in Arizona and New York.

Those other potential sites have yet to disclose any planned tax breaks.

A proposed resolution posted on the city’s website shows that for the land Samsung will use, it is set to be offered a grant equivalent to 92.5% of assessed property tax for 10 years, 90% for the following 10 years and then 85% in the 10 years after that.

 

COSTS REPAYMENTS

Other measures include a 92.5% tax waiver on new property built on the site for 10 years and the repayment of development review costs.

The proposed resolution will be considered on Wednesday by the Taylor City Council and Williamson County Commissioners.

The Taylor site is located about 40 kilometres (25 miles) from Austin. It is about 1,187.5 acres (4.8 square kilometres) in size, much bigger than the Austin site. Samsung last year purchased more than 250 acres in Austin, which is in addition to 350 acres it owns that includes its sole US chip factory.

If Samsung decides on Taylor, it plans to break ground by the first quarter of next year with production due to start by end-2024, a document previously filed with Texas state officials has said.

 

• Reuters and Jim Pollard

 

ALSO SEE:

Samsung to pour $151bn into chips as it eyes global dominance

World’s biggest chipmakers heading to the US

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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