October. 7. 2021
Samsung is on the verge of finalizing a mega US investment plan
|A real view of Samsung Electronics’ foundry chip manufacturing plant in the U.S. state of Texas can be seen in this file photo. Korea Times File|
By Kim Yoo-chul
Samsung Electronics on Monday denied reports that the town of Taylor in Williamson County, Texas, had been chosen as the location for its new semiconductor smelter plant.
âRegarding the location of Samsung’s new semiconductor plant, we are currently reviewing details such as incentive programs and other forms of administrative support submitted by cities in different states. Americans, “a Samsung official said on Monday.
Despite the company’s official denial, procedural steps were reportedly underway for a Thursday (KST) meeting between Taylor, Williamson County and Samsung Electronics to discuss measures that would support Samsung’s selection of the city as the Austin Semiconductor site. the new factory.
At the meeting, Taylor’s city council is expected to authorize the city’s mayor, Brandt Rydell, to enter into a “tax abatement agreement, development agreement and development review services reimbursement agreement,” according to reports.
While Samsung Electronics stressed that the meeting doesn’t necessarily mean it has reached a deal with the city and county for the new plant, investors and market watchers believe the company is close to picking Taylor as the site. Located 60 kilometers from Austin, where Samsung already operates massive foundry chip facilities, the city was seen as the prime location for the new investment.
In February of this year, heavy snowfall in Texas interrupted operation of the company’s Austin plant due to a power outage, which resulted in financial losses and awakened Samsung to the need to explore new places other than Austin to protect against infrastructure risks. In June of this year, Samsung Electronics asked Taylor to provide $ 314 million in tax incentives over the next 10 years, including property tax value limits, which was approved by the Taylor Independent. School District.
At President Moon Jae-in’s first face-to-face summit with US President Joe Biden in May, Samsung announced plans to build a second foundry line in the United States. However, questions about the details and timing of the project have been put on hold. Biden had previously offered $ 50 billion in semiconductor manufacturing support, which has attracted large companies such as Intel and Taiwan’s TSMC to consider significant new investments.
The parole of Samsung chief Lee Jae-yong has raised the possibility that he will address pending investment plans in the United States and other regions as these require his approval, which he was not legally authorized to do so while incarcerated.