Taylor, TX

Samsung to pick Taylor, Texas, for its $17 billion chip plant

Luay Rahil

Photo Credit: Canva

It is no secret that the country's supply chain has been tested in the last two years. As a result, many companies are rethinking their production priorities and bringing manufacturing facilities back to the United States.

Early this week, The Wall Street Journal reported that based on documents previously filed with state authorities, the South Korean company Samsung aims to build a $17 billion chip-making facility in Taylor, Texas, that will create about 1,800 jobs, but chip production is not expected to start until the end of 2024.

The new factory is set to make advanced logic chips used to power mobile devices as the world faces a significant semiconductor shortage. This is Samsung's second chip factory in Texas, where it already manufactures chips at a plant in Austin.

The city of Taylor and Williamson County offered Samsung an incentive package that the company couldn't refuse, the equivalent of property-tax breaks of up to 92.5 percent in the first ten years.

The incentive package consists of several economic development agreements for the project. These include a Chapter 380 development incentive agreement, a Chapter 312 tax abatement agreement, a Chapter 311 development agreement, a development review reimbursement agreement, and a tax increment reinvestment zone economic agreement.

According to Austin American Statesman, "Williamson County approved the incentive package for Samsung, while the Taylor City Council took initial steps to approve incentives for the fabrication facility." 

Mayor Brandt Rydell said, “ I am just so appreciative of Samsung for providing Taylor the opportunity to compete for this project, And we just needed that opportunity because we knew we had something special here in Taylor. And we had a team, an incredible team that could make this happen. And that team included our partners at the county level, the state, and the federal level. And then all of our local partners here from the school district to our Economic Development Corporation to our Chamber of Commerce. We have a fabulous community; fabulous spirit, and we knew we had a great story to tell to Samsung."

Do you think the government should offer companies these kinds of incentives?

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