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Samsung ponders $17 billion chip plant development in Austin

Samsung ponders $17 billion chip plant development in Austin
Samsung ponders $17 billion chip plant development in Austin

South Korean multinational firm, Samsung Electronics Co Ltd has reportedly considered Austin, Texas among one of the sites for the launch of a new $17 billion chip plant, that anticipates creating around 1,800 jobs.

Following its plans, the tech giant is in talks with Travis County and the city of Austin, over other tax breaks to seek a combined tax abatement of approximately $805.5 million for 20 years.

For those uninitiated, Samsung had revealed in its filings that upon picking Austin, it would break ground on the site during the second quarter of the current year and the plant would initiate its operations in the third quarter of 2023.

The electronics giant divulged that the project would be highly competitive, and the company is on the lookout for alternative sites across places like Arizona and New York in the U.S., as well as overseas locations in Korea. The firm, with American customers like Tesla Inc, Qualcomm Inc, and Nvidia for its contract manufacturing chip business, further stressed on the evaluation of the sites on the basis of access to talent, chip ecosystems, and speed to market.

As per Samsung's filings, the company is planning to make progress in advanced logic devices, that may comprise small, and fast computing chips for customers. It was also revealed that the tech firm has an existing chip plant in Austin that generates computing chips. Also, the new project would involve building out of 7 million sq. ft. of new space on a 640-acre site that the company owns.

Citing the reports, Samsung confirmed its decision of expanding its chip facilities but declined to make formal decisions on the matter.

Following the news, Senate Majority Leader of the U.S., Charles E. Schumer, called on the company to set up a factory in his home state of New York. He further divulged that the appeal was made to work on securing federal incentives for the facility, addressing them as key areas to boost their local chip production, given their competition with China.

 

Source Credits:

https://www.moneycontrol.com/news/world/samsung-considers-austin-for-17-billion-chip-plant-eyes-tax-breaks-of-at-least-806-million-6452231.html

 

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Nandita Bhardwaj

Nandita holds a management degree with specialization in marketing, and boasts of a short-term experience in the field of recruitment. Following her passion for writing however, she decided to pursue a career in the field of content development. Presently, Nandita pens down news pieces for newsorigins.com, spanning the verticals of business, finance, and technology.