The city of Taylor, Texas, is planning to offer Samsung extensive property tax breaks if the company chooses to establish its new $17 billion chip plant there.
The South Korean tech giant is currently considering Taylor, as well as Austin, Texas, as a site for a new chip plant that the firm says could create around 1,800 jobs in the region, Reuters reported. Samsung has said it’s also looking at potential sites in Arizona and New York.
As of yet, none of the other sites have disclosed any potential tax incentives they might offer the company.
According to a proposed resolution posted on the Taylor city website, the city is set to offer Samsung a grant for the land it will use equivalent to 92.5 percent of assessed property tax for 10 years, 90 percent for the following 10 years, and then 85 percent in the 10 years after that.
Additionally, the city will potentially offer a 92.5 percent tax waiver on new property built on the site for 10 years and the repayment of development review costs.
The site in Taylor is situated around 25 miles from Austin and measures 1,187.5 acres in size, making it much bigger than the proposed Austin site.
The firm said in documents filed with Texas state officials that if Austin is selected, the company would break ground on the site in the second quarter of this year and that the plant will become operational in the third quarter of 2023.
Samsung’s U.S. customers for its contract manufacturing chip business include Tesla, Qualcomm, and Nvidia.
Samsung’s filing said it plans to make “advanced logic devices,” meaning it would aim to make the smallest, fastest kind of computing chips for customers. The company has an existing chip plant in Austin that makes computing chips.
While Samsung has given no hints as to where it may establish its new $17 billion chip plant, the competition is fierce amid increased demand for consumer electronics that rely on computer chips, also known as semiconductors.
Schumer pledged to work to secure $52 billion in federal incentives to ensure that “new semiconductor fabs like this are built in New York,” in an effort to compete with China in boosting local chip production.
Schumer noted that the United States has gone to producing just 12 percent of the world’s semiconductors from 24 percent in 2000, while China, by comparison, has gone from producing zero chips to 16 percent of the world’s supply because the United States isn’t matching the investments that other competing nations are making.
In a statement, the Ministry of Trade, Industry, and Energy said the country will increase tax breaks to 6 percent from the current 3 percent or lower for capital expenditures between the second half of 2021 to 2024 for large corporations conducting “key strategic technology,” including semiconductors.