According to the documents registered in the state of Texas last Friday, Samsung Electronics has proposed an investment of about 200 billion dollars in order to develop 11 new chip production factories in the United States over the next 2 decades. It is worth noting that Samsung has recruited more than 20,000 American workers. The history of Samsung’s manufacturing activity in the United States is more than 40 years.
The Korean tech giant has submitted requests to Taylor and Manor county officials for tax breaks to build 11 new chip manufacturing facilities. Nine of these plants will be built in the Taylor area and two in the Austin area. The expected investment amount is also mentioned in this letter.
Now Samsung is building a factory in Taylor County and the area near the company’s large chip manufacturing plant in Austin. This factory was built with a capital allocation of 17 billion dollars and the news of its construction was officially announced in November last year.
The largest manufacturer of memory chips in the world has not announced exactly in which areas it will invest the mentioned 192.1 billion dollars budget. Samsung commented: “Currently, we do not have any special plans for building a new factory. However, the Chapter 313 plans in Texas are part of Samsung’s long-term planning process to evaluate the possibility of building more manufacturing plants in the United States.”
According to Chapter 313 of the Texas Comptroller’s Office, state entities can provide special tax incentives to investor businesses. In addition, these licenses are revoked at the end of each year. Therefore, companies must submit their application again to continue receiving tax benefits.
The construction site of the chip manufacturing plant in the Taylor region of Texas (image source: Samsung Electronics)
Greg Abbott; The governor of Texas has approved such an idea. He issued a statement and announced: “This potential investment will seek billions of dollars in additional capital to continue business growth in the global market and train a diverse and highly skilled workforce.” The Incentives for Semiconductor Manufacturing in the United States (CHIPS) Act was proposed by Greg Abbott to the US Congress for approval.
According to him, helping the United States to create a secure semiconductor supply chain is vital for the country’s economy and national security. The purpose of passing the CHIPS law is to strengthen the supply chain, increase the chip production capacity in the United States, and ultimately restore the manufacturing expertise in this country.
In order to increase production capacity and solve the problem of persistent chip shortages, Samsung asked Washington in March this year that international chip companies should enjoy equal opportunities to apply for government incentives.