Samsung, countdown on US semiconductor expansion? … foreign press “request for tax reduction for 20 years”

A foreign press reported that Samsung Electronics, which is considering investing in large-scale semiconductor facilities in Austin, Texas, has requested a tax reduction from the US local government as a condition for plant expansion.

According to foreign press and industry sources on the 5th, Samsung Electronics will be able to add up to $17 billion (19 trillion won) to a foundry (consignment production) factory in Austin, Texas. He said he requested the local government of the United States for a reduction in exemption. On the 2nd (local time),’Community Impact’, a local media in Texas, said, “Recently, the city of Austin offered Samsung Electronics an economic incentive of $650 million (723 billion won) over the next 10 years, but Samsung Electronics did this. “Samsung Electronics wants a 100% tax refund for the next 20 years,” he said. This is the first time that Samsung’s requirements have been specifically disclosed through foreign media.

Samsung Electronics requested tax cuts and announced that it could start construction in the second quarter of this year and start operation in the fourth quarter of 2023 if the investment in Austin is confirmed. The new plant is 7 million square feet (about 65 million square meters), and it also stressed that it could create 1800 jobs over the next 10 years. Samsung Electronics has already finished reusing the site it purchased near the plant in preparation for the Austin plant expansion in December last year.

Samsung Electronics aims to invest 133 trillion won by 2030, surpassing Taiwan’s TSMC and achieving the global No. 1 system semiconductor. TSMC is promoting the establishment of a semiconductor plant with the goal of operating in 2024 by investing $12 billion in Arizona last year.
Reporter Park Hyung-soo [email protected]