In the event that Samsung Electronics (005930.KS) picks Taylor, Texas as one of two locations in the state for a $17 billion semiconductor plant, the city intends to offer considerable property tax reductions to the company. A bidding battle is raging between Taylor and the city of Austin for the plant, which is expected to create 1,800 new jobs. Additional areas in Arizona and New York are also being considered, according to Samsung.
Other possible locations have yet to reveal their tax incentives. According to a draught resolution posted on the city’s website, Samsung will be granted a grant equivalent to 92.5 percent of assessed property tax for the first ten years, 90 percent for the next ten years, and then 85 percent for the next ten years for the land it would utilize.
Other measures include a 10-year tax exemption of 92.5 percent on new property developed on the site, as well as reimbursement of development review fees. The Taylor City Council and Williamson County Commissioners will discuss the proposed resolution on Wednesday. The facility was being considered for four locations in the United States: two in Arizona, one in New York, and one in Texas.
According to Reuters, Samsung, which already has a semiconductor plant in Austin, has made no decisions. President Joe Biden suggested $50 billion to assist chip production, prompting businesses such as Intel and Taiwan Semiconductor Manufacturing, the world’s largest chip manufacturer, to contemplate substantial investments.
The Chinese Communist Party aggressively tries to restructure and dominate the semiconductor supply chain, Biden said during a White House meeting with industry leaders, citing a letter he received from 23 senators and 42 members of Congress.
Austin is roughly 25 miles (40 kilometers) away from the Taylor location. It is significantly larger than the Austin site, at 1,187.5 acres (4.81 square kilometers). Samsung bought more than 250 acres near Austin last year, in addition to the 350 acres it already owns, which contains its lone U.S. chip plant.
According to a document previously filed with Texas state officials, if Samsung chooses Taylor, it expects to commence ground in the first quarter of next year, with manufacturing beginning by the end of 2024. Samsung stands to reap $150 billion in tax advantages from South Korea’s semiconductor sector over the next 10 years.
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