Samsung seeks tax breaks for new chip plant in US
Seoul, Feb 6 Samsung has asked Texas state officials to give tax breaks for its potential new chip plant, news reports showed Friday, raising speculation that the South Korean tech titan could make a big investment in the US.
The world's largest memory chipmaker has requested authorities in Texas to grant tax abatements over 20 years, which would be worth a total of $805.5 million, for its new $17 billion chip facility in Austin, Texas, according to the Austin American-Statesman newspaper and other foreign news outlets.
Samsung reportedly wanted tax breaks worth $718.3 million from Travis County and $87.2 million from the city of Austin, they reported.
In documents filed with the state officials, Samsung said it would start construction in the second quarter of this year and that the new facility will be able to operate in the third quarter of 2023 if Austin is selected as the site for its new chip plant, according to the news reports, adding that the investment would create some 1,800 jobs.
In the documents, Samsung also said it is inspecting other sites in the U.S., including Arizona and New York, as well as South Korea, for its new chip plant project.
Samsung said that it is reviewing multiple sites for the project, but nothing has been confirmed, reports Yonhap news agency.
The company already announced during a conference call last month that no decision has been made yet for the US investment, though it admitted that it is considering expanding its chip facilities.
Samsung already runs a chip factory in Austin, Texas, but it is apparently seeking to build another one to bolster its production to catch up with foundry leader Taiwan Semiconductor Manufacturing Co. (TSMC).
In 2019, Samsung unveiled a plan to become the world's No. 1 logic chipmaker by 2030 by investing 133 trillion won to bolster its competitiveness in the system chip and foundry businesses.