TECHNOLOGY

Samsung Tax Cuts on Future Texas Plants

South Korean giant Samsung begins filing for tax breaks on 11 potential chip factories in Texas ahead of US CHIPS Act

The US state of Texas could qualify for more chip factories after Samsung Electronics began paperwork for more facilities.

Reuters reported: that the South Korean electronics giant has begun filing for tax breaks for a total of 11 potential chip factories in Texas.

Samsung, we must not forget, announced last November that it would build a new $17 billion (£12.7 billion) semiconductor factory in Taylor, Texas.

The leaders of Samsung Foundry Business and Semiconductor R&D Center hold up three fingers to symbolize 3nm, celebrating the company’s first-ever production of the 3nm process with GAA architecture.

Texan factories

The Taylor facility is expected to create 2,000 high-tech jobs and manufacturing from the second half of 2024.

The decision to choose Taylor in Texas came after Samsung considered four locations in Arizona, Texas and New York, but ultimately chose Texas.

Now Governor of Texas, Greg Abbott celebrated Samsungs that may want to increase its historic Texas investment with 11 new semiconductor manufacturing facilities in Taylor and Austin.

“Close partnerships with companies like Samsung—who recognize the limitless opportunities Texas has to offer—open up more opportunities for Texans, and this potential investment will generate billions in additional capital to support our world-class business environment and diverse, highly skilled workforce,” said Governor Abt.

“These new facilities strengthen the Lone Star State as the nation’s leader in the semiconductor industry, and I thank Samsung for increasing their investment in the hard-working people of Central Texas,” he said.

The governor cited the passing of the Creating Helpful Incentives to Produce Semiconductors for America (CHIPS) Act, which is currently under consideration by the US Congress, a key factor for this potential investment by Samsung.

tax benefits

Reuters reported that Samsung’s applications, submitted to Texas school districts where Samsung has an existing chip factory or is in the process of building a new one, are part of the state’s Chapter 313 incentive program.

Chapter 313 reportedly offers real estate tax breaks and is currently expiring in late 2022 — meaning businesses that want to capture tax breaks under the program must apply before the end of the year, regardless of how initial the plans are.

It should be noted that these applications are for potential factories and nothing has yet been confirmed about the construction of the additional facilities.

“We currently have no specific plans to build,” Samsung told Reuters.

“However, the Texas Chapter 313 filings are part of Samsung’s long-term planning process to evaluate the viability of potentially building additional manufacturing plants in the United States.”

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