Samsung to reportedly build $17B chip factory in Taylor, Texas

Posted:
in General Discussion edited November 2021
Samsung has reportedly selected Taylor, Texas, as the site of a planned multi-billion dollar chipmaking facility, with the plant expected to serve the company's contract manufacturing operations.

Samsung


Citing sources familiar with the matter, The Wall Street Journal reports Samsung will spend about $17 billion to build out the plant, part of the company's $205 billion in funds earmarked for investment over the next three years.

Documents filed with state planners propose a site that will create about 1,800 jobs when chip production begins in 2024, the report said. It is unclear if construction jobs are also included in that figure.

Taylor is reportedly offering hefty tax incentives to sway Samsung's decision, including breaks in property taxes that come out to some 92.5% for the first 10 years. Those write-offs would gradually decline over the following decades, the report said.

The world's largest semiconductor maker by revenue, Samsung has operated a chip plant in Austin, Texas, for decades. The new location in Taylor is estimated to come out to about 1,200 acres of land, a much larger plot than the firm's first and only U.S. chipmaking site.

Texas Gov. Greg Abbott could announce the investment on Tuesday.

"A final decision has not yet been made regarding the location," a Samsung spokesperson told the WSJ.

Today's report arrives amid a global chip crunch that is impacting a slew of industries. Samsung is not alone in its plans to build out capacity, with Apple partner TSMC announcing or eyeing expansions to its business in Arizona, Taiwan and Japan.

In April, TSMC announced plans to spend $100 billion on chip fabrication over the next three years. Intel, meanwhile, intends to spend the same figure over the next ten years as it expands operations, a program that will include an attempt to win orders from Apple.

Earlier this year, a rumor floating around a South Korean forum claimed Samsung was actively recruiting former Apple and AMD engineers to develop custom in-house chip designs. An unnamed Apple employee was said to be in talks to lead the initiative.

Read on AppleInsider

Comments

  • Reply 1 of 13
    I guess this could mollify my feelings towards Samsung. A bit.

    However the headline of this article seems to contradict Samsung's quoted statement in the same article.
  • Reply 2 of 13
    Everyone is moving to Texas, they are all leaving California, hmm i wonder why??? 
    williamlondon
  • Reply 3 of 13
    lkrupplkrupp Posts: 10,557member
    Kuyangkoh said:
    Everyone is moving to Texas, they are all leaving California, hmm i wonder why??? 
    The problem is the California Marxist mentality is moving with them. The people who created dystopian California are now moving to Texas and Arizona, which will slowly turn Blue and the pattern will repeat.
    williamlondon
  • Reply 4 of 13
    rob53rob53 Posts: 3,251member
    Property tax breaks of 92.5% means Samsung won’t be contributing to schools and infrastructure (utilities). Who pays for those? Oil? Nobody does because the rich get richer and everyone else lives in poverty. Texas has become like an abused third-world country. 
    muthuk_vanalingamdarkvaderdanoxwilliamlondonviclauyycDogpersonthtwatto_cobra
  • Reply 5 of 13
    rob53 said:
    Property tax breaks of 92.5% means Samsung won’t be contributing to schools and infrastructure (utilities). Who pays for those? Oil? Nobody does because the rich get richer and everyone else lives in poverty. Texas has become like an abused third-world country. 
    Meanwhile, my property taxes in Texas will increase by over 10% next year.  SMFH
    darkvaderrob53Dogpersonwatto_cobra
  • Reply 6 of 13
    darkvaderdarkvader Posts: 1,146member
    rob53 said:
    Property tax breaks of 92.5% means Samsung won’t be contributing to schools and infrastructure (utilities). Who pays for those? Oil? Nobody does because the rich get richer and everyone else lives in poverty. Texas has become like an abused third-world country. 
    Meanwhile, my property taxes in Texas will increase by over 10% next year.  SMFH
    That's because you're not a multinational corporation that could easily afford to pay the full rate.  Gotta make it up somewhere.
    Dogperson
  • Reply 7 of 13
    rob53rob53 Posts: 3,251member
    rob53 said:
    Property tax breaks of 92.5% means Samsung won’t be contributing to schools and infrastructure (utilities). Who pays for those? Oil? Nobody does because the rich get richer and everyone else lives in poverty. Texas has become like an abused third-world country. 
    Meanwhile, my property taxes in Texas will increase by over 10% next year.  SMFH
    Corrupt money grabbing politicians continue to not care about regular people only about how to line their pockets with money. Same in every state although it looks like CA is cutting back on giving away everything. Texas, NC and other states sell out their people to grab a few bucks. 

    How many people would this factory even employ—after it’s constructed? Doubt it will be that high, many low wage custodial and shipping work. Everything else is automated. 
    viclauyycDogpersonwatto_cobra
  • Reply 8 of 13
    danoxdanox Posts: 2,849member
    lkrupp said:
    Kuyangkoh said:
    Everyone is moving to Texas, they are all leaving California, hmm i wonder why??? 
    The problem is the California Marxist mentality is moving with them. The people who created dystopian California are now moving to Texas and Arizona, which will slowly turn Blue and the pattern will repeat.
    The fifth largest economy in the world, five of the best universities in the world in California, (https://en.wikipedia.org/wiki/University_Ranking_by_Academic_Performance, one of the largest harbors by shipping volume, with a economy almost 40% larger than Texas, oh last but not least California has Prop 13 which means something if your house is paid for and you are retired after a life or work, California has nothing to worry about it’s those native Texans and Arizonans who are being bought out and booted out to poorer area’s with the help of the local bankers and local real state companies, worry about them…..

    The actual human Cold War is class, power, and trade (money came later), and has been for nearly 10,0000 years since that first farmer in Asia Minor successfully bought in the first harvest, your party or religion are just side shows the upper 5% do not care if the masses waste time on it, as long as they have class, power and trade (money).

    Gig worker, sharecropper, non union, subscription renter seems to be the future for most…..and which part of the USA is closer to that? Mideast, Southeast…
    tyler82lkruppviclauyycDogperson
  • Reply 9 of 13
    tyler82tyler82 Posts: 1,101member
    Kuyangkoh said:
    Everyone is moving to Texas, they are all leaving California, hmm i wonder why??? 
    California has its problems, but is still above and beyond a stronger economy and much more desirable place to live than Texas. The reason some people are leaving is because of it’s own success and popularity: it’s too damn expensive because everyone wants to be in California (well, everyone who matters anyway, not trailer park Fox News indoctrinated cranks). 

    I wonder how many people are regretting their move after the power grid failures and mass deaths of people in Texas freezing to death. That’s some third world dystopia right there. 
    edited November 2021 williamlondonviclauyyc
  • Reply 10 of 13
    Wow. That's a serious competition for Intel.
  • Reply 11 of 13
    tyler82 said:
    Kuyangkoh said:
    Everyone is moving to Texas, they are all leaving California, hmm i wonder why??? 
    California has its problems, but is still above and beyond a stronger economy and much more desirable place to live than Texas. The reason some people are leaving is because of it’s own success and popularity: it’s too damn expensive because everyone wants to be in California (well, everyone who matters anyway, not trailer park Fox News indoctrinated cranks). 

    I wonder how many people are regretting their move after the power grid failures and mass deaths of people in Texas freezing to death. That’s some third world dystopia right there. 
    I’ve lived in Texas all of my life except for a couple of years.  I’m tired of this state. We should call it taxes instead of Texas.  Correct, we don’t pay an income tax, but my property tax is much more expensive!!  In addition my home owners insurance increased by 45% without any clear explanation!!
    viclauyycravnorodomDogpersonwatto_cobra
  • Reply 12 of 13
    badmonkbadmonk Posts: 1,293member
    tyler82 said:
    Kuyangkoh said:
    Everyone is moving to Texas, they are all leaving California, hmm i wonder why??? 
    California has its problems, but is still above and beyond a stronger economy and much more desirable place to live than Texas. The reason some people are leaving is because of it’s own success and popularity: it’s too damn expensive because everyone wants to be in California (well, everyone who matters anyway, not trailer park Fox News indoctrinated cranks). 

    I wonder how many people are regretting their move after the power grid failures and mass deaths of people in Texas freezing to death. That’s some third world dystopia right there. 
    I’ve lived in Texas all of my life except for a couple of years.  I’m tired of this state. We should call it taxes instead of Texas.  Correct, we don’t pay an income tax, but my property tax is much more expensive!!  In addition my home owners insurance increased by 45% without any clear explanation!!
    Agree, property taxes are the sixth highest in the country (per my memory) and not fixed to inflation like my homestead in FL.

    Texas is a surprisingly high tax state.  Plus factor in a dysfunctional power grid, weather disruption and inability to enforce common sense measures for 21st century manufacturing (culture war prevention of public health mandates and having workers open carry in the work place etc etc), Texas may not be the bastion of free market capitalism going forward.
    watto_cobra
  • Reply 13 of 13
    If $17 billion for a chip plant sounds expensive to you, consider that several trillion dollar companies are now entirely dependent on the chips produced by them. If, like Atlantis, Taiwan sinks beneath China's waves it will take the entire tech industry with it. Building chip fabs all around the planet seems like a really good deal in comparison to the alternatives. Demand for chips is growing without any end in sight and even if there ended up being overcapacity, that capacity would soon be used for something and everyone would benefit from lower priced components.
    edited November 2021
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