Samsung Electronics Co. proposed investing about $200 billion to develop 11 new chip factories in the US over the next two decades, according to records filed with the state of Texas on Friday. It is to be noted that over 20,000 Americans are employed by Samsung, which has more than 40 years of manufacturing history in the US.
The petitions that the South Korean tech behemoth submitted to the Taylor and Manor school districts, asking for tax exemptions for the prospective building of 11 new chip production facilities in the state—nine in Taylor and two in Austin—describe the anticipated investment.
Samsung is now constructing a $17 billion plant in Taylor, close to its existing massive chip factory in Austin. It was announced in November last year.
The largest memory chip manufacturer in the world has not indicated if it is determined to invest the suggested $192.1 billion.
Samsung declared, “We currently do not have specific plans to build at this time, 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,”
According to the Texas Comptroller’s office, Chapter 313 “allows public school districts to offer tax incentives for businesses that invest in their communities.” Additionally, it is due to expire at the end of the year, so companies must reapply to continue receiving the tax benefits.
Greg Abbott, the governor of Texas, endorsed the idea. “This potential investment will bring billions of additional capital to continue growing our world-class business climate and diverse, highly skilled workforce,” he said in a statement.
The Creating Helpful Incentives to Produce Semiconductors for America (CHIPS) Act was also recommended by Abbott to be passed by the US Congress in order to assist the US in establishing “a secure semiconductor supply chain, which is vital to our nation’s economy and national security.” The CHIPS Act aims to strengthen supply chains, increase US chip manufacturing capacity, and eventually restore the country’s manufacturing expertise.
In order to increase manufacturing capacity and address a persistent chip shortage, Samsung urged Washington in March to grant international chipmakers an equal opportunity to apply for state incentives under the legislation.
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