Texas plans to offer Samsung large property tax breaks to build chip plant

Jeet — Tue, 07 Sep 2021 07:41:13 +0000

Samsung, the South Korea-based technology giant is gearing up to set up its new chip production plant in the United States and the company has shortlisted two potential locations for the same.

The city of Taylor and Austin are the two locations and now one of them, Taylor, is planning to offer extensive property tax breaks if it is chosen by the South Korean tech giant for the chip plant, reports Reuters.

The new plant by Samsung for manufacturing chips is worth around $17 billion and is set to create 1,800 new jobs. The company has also said it is looking at other potential sites in Arizona and New York but other potential sites have not yet disclosed planned tax breaks.

A proposed resolution posted on the Taylor 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.

Apart from that, a 92.5% tax waiver on new property built on the site for 10 years and the repayment of development review costs is also a part of the plan. The proposed resolution will be considered this week by Taylor City Council and Williamson County Commissioners.

For those who are unaware, Taylor is located around 25 miles away from Austin and is about 1,187.5 acres in size, much bigger than the Austin site. Samsung last year purchased more than 250 acres in Austin, which is in addition to the 350 acres it owns that includes its sole U.S. chip factory.

If the location is finalized by Samsung, then work on this new plant should start by the first quarter of next year with a production commencement target of end-2024. We’ll just have to wait and watch to know which city Samsung finally decides to set up its new plant.

Taylor Archives - Gizmochina

Texas plans to offer Samsung large property tax breaks to build chip plant