Samsung is building a chip factory in the Austin, Texas area of the United States, which is estimated to cost around $17 billion. But it is far from the only fab the company is thinking of building in that area.
In fact, Samsung has filed for tax breaks for 11 more factories it wants to build in Texas, in Taylor and Manor counties.
Of course, this is far from a done deal – and there is undoubtedly a lot that depends on whether Samsung gets those tax breaks or not – they would add up to a whopping $4.8 billion. If not, then these plans will clearly be shelved. But if it receives the incentives from the local authorities, then the total investment in the 11 factories could total around $192 billion, which is just a staggering sum.
Samsung could also create more than 10,000 jobs in the area if all this is successful. In fact, if it all goes through, this will be the largest financial investment in Central Texas history.
Two of the 11 proposed factories would be in Austin, and nine in Taylor, a city of about 17,000 people 25 miles northeast of Austin, where the currently-built Samsung factory is also located. The Austin plants would account for $25.4 billion of the new investment and 1,800 jobs, while Taylor would get $167.6 billion and 8,200 jobs, respectively.
The earliest any of these makes could conceivably be operational is 2034, while two of them are only slated for 2042. That said, it’s important to note that none of this is binding – Samsung hasn’t given any guarantees that they will actually build any of the facilities, so plans could still be changed or scrapped altogether even if the company gets its incentives.
A Samsung spokesman said the incentive applications that have just been filed are part of the company’s long-term planning. It seeks to “evaluate the viability of potentially building additional manufacturing facilities in the United States”. Texas’ incentive program is set to expire at the end of this year, prompting a flood of companies to apply in recent months — Samsung is just the latest to do so.
And yet there are plenty of reasons why the company should actually implement its plans. First, it already has a very strong presence in Austin, where it has operated since 1997 and currently employs about 10,000 people, more than anywhere else outside of Korea.