Samsung Austin factory view/Photo courtesy of Samsung Electronics
Samsung(86,100 -0.69%)While there are observations that the company is considering expanding a semiconductor plant in the US, the’love call competition’ to attract Samsung in the local area is hot. Samsung Electronics is in the position that “the scale or timing of investment has not yet been decided.
According to Austin American Statesman, a US media outlet on the 26th (local time), the Austin City Council is expected to finalize the relocation plan for the’Samsung Boulevard’ surrounding Samsung Electronics’ Austin semiconductor business (SAS) as early as the 27th.
As Samsung Electronics completed a factory in Austin in 1998 and expanded its business, the city of Austin changed the name of the road around the factory to commemorate this. The media analyzed that “if most of these roads are relocated, Samsung will be able to build new facilities on the site it owns next to the existing facilities.”
The media explained that the road relocation was at the request of Samsung Electronics. He said, “This may indicate that Samsung is suggesting additional expansion at the Austin Foundry plant.” It is reported that Samsung Electronics continued to purchase 104089m2 of land near the Austin plant from 2018 to last October. In December last year, the use of the land purchased near the factory was also completed.
The Austin Urban Planning Committee and others conveyed their intention to actively promote the plan to the Austin City Council, even though some of the local residents expressed their opposition to the plan for the relocation to Samsung due to the possibility of intensifying traffic congestion, and will actively support the expansion of the Samsung Electronics plant. Is revealing.
KP Judge George Written Hand Letter/Photo = Twitter Capture
It is reported that a judge from Fort Band County, located on the outskirts of Houston, Texas, recently wrote a hand letter to Samsung Electronics Vice Chairman Kim Ki-nam, who oversees the semiconductor business of Samsung Electronics, requesting the establishment and visit of the Samsung Electronics semiconductor plant. Fort Band County is about two hours from Samsung Electronics’ Austin plant.
According to several local Texas media, KP George County judge, who oversees the administrative powers of the Fort Band County area, said in an open letter on the 25th that “Texas is a business-friendly area free of corporate and personal income taxes.” There are advantages such as infrastructure and deregulation.”
He said, “The US overcame the Corona 19 crisis and started returning to work.” “Port Band County is the region with the highest per capita tertiary education graduation rate in the United States,” he said. “It is now considered an attractive destination for major IT companies such as Amazon, Dell, Tesla and HP.”
In addition, KP Judge George said, “We welcome Samsung with open arms” on his personal Twitter. Although Samsung Electronics adheres to the position that “nothing has been decided yet, and is under consideration” regarding investment in the US, it is interpreted that love calls are followed as the rumors of investment in the US become a prerequisite, mainly by foreign media.
In fact, the industry sees that Samsung Electronics is highly likely to invest in the US. This is because Taiwanese TSMC, which has already built a factory in the United States since last year, has announced that it will invest 30 trillion won with our money this year alone, with the global semiconductor market showing signs of entering into a’supercycle (long-term boom)’ starting this year.
In addition, considering the launch of the Joe Biden administration, which declared’Buy American’ with the main focus of domestic production and purchase, Samsung Electronics is highly likely to invest in the United States. .
On the 22nd (local time), the Wall Street Journal reported that Samsung Electronics was considering building a semiconductor production line in Texas, Arizona, and New York, spending about 18 trillion won ($17 billion). On the same day, Bloomberg News also said that Samsung Electronics plans to expand its foundry line at its Austin, Texas plant by investing more than 11 trillion won ($10 billion).
Seongsu Bae, reporter Hankyung.com [email protected]