[서울신문] Samsung Electronics’ US semiconductor investment’tax reduction and exemption’…

Submitted a letter of intent to the Texas government.. A decision is imminent.
Invested KRW 19 trillion, Austin’s new plant will be operational at the end of 2023 when confirmed
“If there is no tax improvement, invest in other regions such as Arizona, New York and Korea”
Local media “100% tax cut is unprecedented..70~80% compromise forecast”

An analysis came out that the construction of a US semiconductor plant under consideration by Samsung Electronics will have an economic ripple effect of 10 trillion won in local communities. There are also observations that Samsung Electronics’ decision to negotiate tax benefits and new semiconductor investment candidates in Austin, Texas, Arizona, New York, and South Korea is imminent.

According to industry sources on the 7th, Samsung Electronics recently submitted a letter of intent for investment to the Texas State Treasury Department. A report on the economic ripple effect analyzed by the local consulting firm Impact Data Source was attached. According to this, it is estimated that only 8.9 billion dollars (about 10 trillion won) of economic activity will occur in the local community only in the process of Samsung Electronics’ factory construction.

It is analyzed that if the factory is actually operated, economic effects of $8.6 billion (about 9,662.1 billion won) will occur over the next 20 years through jobs and tax revenue. It is calculated that 2973 full-time jobs are created, and they are paid 8.3 billion dollars (about 8.325 trillion won). The investment to expand the Austin semiconductor plant amounted to 17 billion dollars (about 19 trillion won).

When investment in a new plant in Austin is confirmed, construction will commence in the second quarter of the year and can be operated in the fourth quarter of 2023. The company is putting several candidates on the screen, but the industry and foreign media believe that the Austin plant expansion will be dominant.

Samsung Electronics has already purchased an additional 1,04089㎡ site near the Austin plant and completed its use in December last year. In the application form, Samsung Electronics said, “We want to continue to invest in the local community through strong ties with the local community and successful production activities in Texas for the past 25 years.”

The key to’Mildang’ is’the scale of tax cuts’. According to Austin American Statesman, a local journalist, Samsung Electronics wants Travis State to get 100% tax cuts over the next 20 years, which is worth $719.3 million (about 88.1 billion won). The city of Texas demands a 50% tax cut, which amounts to 87.2 million dollars (about 98 billion won) over the next five years. Together, it is about 900 billion won, which is about 200 billion won different from the 650 million dollar (approximately 7302 billion won) suggested by the city of Austin.

A local expert said, “100% tax reduction is unprecedented,” and “there will be a compromise at 70~80%.” Samsung Electronics, which is receiving’love calls’ from multiple candidate sites, said, “Texas’ high tax is a factor to consider,” and said, “If there is no improvement, we will make investments in Arizona, New York, and Korea.”

An official from Samsung Electronics said, “There is nothing further advanced in that we are reviewing the appropriate position among the various candidates at the stage of negotiating with a letter of intent for investment.”

Reporter Jeong Seo-rin [email protected]