The city of Taylor, Texas, is planning on offering Samsung large property tax breaks if the company chooses to establish a new $17 billion chip plant in the municipality.
The city is competing with Austin, as well as Arizona and New York, in a bid to convince Samsung to establish a $17 billion chip plant that could bring around 1,800 new jobs to the region, as reported by Reuters. So far, the other sites haven’t disclosed any potential tax breaks they would give the tech giant.
The proposed resolution details that for the land Samsung will use, it will be offered a grant equivalent to 92.5% of assessed property tax for 10 years, 90% for the following 10 years, and then 85% in the 10 years after that. Additionally, the city will also potentially offer a 92.5% tax waiver on new property built on the site for 10 years and the repayment of development review costs.
The resolution will be considered on Wednesday 8 September by the Taylor City Council and Williamson County Commissioners.
The site in Taylor is situated around 25 miles from Austin and measures 4.81 square kilometres in size, which is much bigger than the proposed Austin site.
RELATED RESOURCE
Manufacturing modernisation: How to get there
Get your free guide to modernising your factories with mobile technology
In May, South Korea announced it would introduce bigger tax breaks and 1 trillion won (£627 million) in loans across its manufacturing industry to try and alleviate the global chip crisis. Tax breaks increased from 3% to 6% and the change applied to “key strategic technology”, like semiconductors, and was set to affect the country’s first and second-largest manufacturers, Samsung and SK Hynix respectively.
Following this news, Samsung announced it would increase its investments in the country from 133 trillion to 171 trillion (£107 billion) through 2030. It hoped that this would accelerate research of cutting-edge semiconductor process technology and the construction of a new production facility.
In May, it was reported that TSMC was set to build five more chip plants in Arizona, in addition to the $12 billion factory it was already planning to build in the state. The Arizona project represents a significant expansion of the company’s plans to shift its manufacturing to the US, as it currently has most of its plants in Taiwan, with others in Washington and China. It was reported that the expansion was in response to a request from the US government.
-
HPE's new Cray system is a pocket powerhouseNews Hewlett Packard Enterprise (HPE) had unveiled new HPC storage, liquid cooling, and supercomputing offerings ahead of SC25
-
High performance and long battery life: How Dell AI PCs offer the best of both worldsUnlocking the true potential of on-device AI requires a perfect balance between software and hardware
-
UK firms are pouring money into AI, but they won’t see a return on investment unless they address these key issuesNews An SAP report projects increased AI investment, but cautions that too many organizations are taking a fragmented approach
-
Intel makes high-level hires while factory workers are warned of layoffsNews The company is appointing four senior executives as part of efforts to refocus on engineering and customer relationships
-
UiPath names Simon Pettit as new AVP for UK and IrelandNews The seasoned leader will spearhead region-specific transformation projects as UiPath looks to drive operational growth and customer engagement
-
How to empower employees to accelerate emissions reductionin depth With ICT accounting for as much as 3% of global carbon emissions, the same as aviation, the industry needs to increase emissions reduction
-
Worldwide IT spending to grow 4.3% in 2023, with no significant AI impactNews Spending patterns have changed as companies take an inward focus
-
Report: Female tech workers disproportionately affected by industry layoffsNews Layoffs continue to strike companies throughout the tech industry, with data showing females in both the UK and US are bearing the brunt of them more so than males
-
How can small businesses cope with inflation?Tutorial With high inflation increasing the cost of doing business, how can small businesses weather the storm?
-
How to deal with inflation while undergoing digital transformationIn-depth How can organizations stave off inflation while attempting to grow by digitally transforming their businesses?
