Input 2021.02.05 12:15 | Revision 2021.02.05 12:19
State government demands $85.5 million in tax benefits
“Not confirmed”, Arizona, New York, and Korea are also subject to review
On the 5th (local time), Reuters reported this, citing a Texas state government document. Until now, foreign media reports that Samsung Electronics will expand its Austin plant have been reported steadily, but this is the first time it has been revealed through actual documents.
According to Reuters, if Samsung Electronics builds a new factory in Austin, it is planning to start operation in the second quarter of this year and start operation in the third quarter of 2023. In return for the investment, Samsung has ordered a tax benefit of $85.5 million (about 900 billion won) to Austin City and Travis County over the next 20 years.
In a document filed with the Texas state government, Samsung Electronics said, “This project has a very high level of competitiveness,” and “Other candidate regions in the US include Arizona and New York and Korea.” It is interpreted as a plan to make a final decision after comparing with other candidates.
Samsung Electronics’ Austin plant is the only semiconductor production base in the United States. Construction began in 1996 and completed in 1998. At the time of its initial establishment, memory was the main focus, but from 2011, it has been producing 10 nano (nm) class system semiconductors from 12-inch wafers. In 2014, it introduced the world’s first 14-nano FinFET process and mass-produced the Apple A9 chipset. Since then, it has been observed that Samsung Electronics will build an additional factory by purchasing a site near the Austin factory in October last year.
In particular, reports of Samsung Electronics’ review of new/expansion plants in Austin have been reported since the beginning of this year. On the 22nd of last month (local time), the Wall Street Journal (WSJ) said, “Samsung Electronics is considering building a semiconductor production line in Texas, Arizona, and New York, US with 17 billion dollars.” On the same day, Bloomberg News reported that “Samsung Electronics plans to expand the consignment production (foundry) line at the Austin, Texas plant by investing more than 10 billion dollars (about 11 trillion won).”
In response to this, Samsung Electronics responded cautiously, saying, “The size or timing of investment has not been decided” in a conference call that took place after the 4th quarter earnings announcement in January. However, inside and outside the company, there is a lot of anxiety that it could be pushed out of competition with TSMC without investment.
In fact, it is reported that TSMC is building a semiconductor plant in Arizona, spending 12 billion dollars (about 13.5 trillion won), and plans to make the largest facility investment ever, reaching up to 28 billion dollars this year.