It’s been a long time since Samsung announced that it wants to establish a new chip plant in the United States. 17 billion dollar decision coming from Samsung. The cost of the entire project is approximately 17 billion dollars. State and local officials are trying to win over Samsung with incentives and tax breaks.
Samsung has not yet made a decision about the location of its new factory. However, it is said that the decision could come very soon.
Samsung Has Lucrative Tax Cuts
Texas’ Williamson County judge, Bill Gravell, said Samsung’s decision was imminent. “My experience with Samsung is that they are agile and move fast,” he added. Williamson County is working on this new project.
Samsung has previously stated that it wants to start the construction of the new chip factory by January 2024. It expects the factory to be operational by the end of 2024. Samsung is considering Austin and Williamson County in Texas as potential locations. Additionally, options include New York and California.
Gravell is an elected official and has participated in local negotiations with Samsung. The company is confident that Samsung will choose Williamson County, as it has already begun taking drill samples and land survey, engineering and design work. The region is no stranger to big tech companies. Dell is headquartered there and an Apple Campus will be built there in the future.
Company executives are examining the benefits both states offer and are also looking at Genesee County as a potential site. However, there is the possibility of leaving the United States altogether and returning to South Korea.
Estimates say that setting up the New York factory could cost Samsung $17 billion. It’s not immediately clear what products will be produced at the new facility, but we’re likely looking at 5nm chipsets. Samsung could also use it to support 8nm chip manufacturing, given the high demand for Nvidia’s high-end GeForce RTX 3000 series graphics cards.
The US federal government is expected to offer Samsung up to $2 billion in tax breaks to set up a factory within its borders. The company will also receive significant tax breaks from local government entities to fund the necessary infrastructure improvements. To entice Samsung, Williamson County commissioners this week approved a massive stimulus package. It will refund 90% of property taxes to Samsung for the first 10 years and 85% for the next 10 years. To receive this incentive, Samsung must meet set construction deadlines and create 1,800 full-time jobs.
Source: SamMobile, Reuters