Samsung offered tax rebates for 30 years to build $17bn chip plant in Texas

'No decision has been made' super-corp reminds El Reg


The city of Taylor, Texas, has offered Samsung property tax breaks over the course of 30 years if the South Korean chip giant agrees to build a $17bn fabrication plant on its land.

Samsung is shopping around for plots to expand its chip manufacturing presence on US soil, and is considering spots in Texas, Arizona, and New York, we’re told. Officials representing Williamson County and its city of Taylor in the US state published an outline of their proposal [PDF] to Samsung ahead of a scheduled meeting with representatives from the chaebol on September 8.

The city offered to pay a series of grants, covering the costs of 92.5 per cent of property taxes for the first ten years, 90 per cent over the following ten years, and 85 per cent over the next ten years after. All in all, Samsung would receive tax subsidies over 30 years if it chooses to build a plant in Taylor. The move is expected to bring in 1,800 jobs within seven years of ground being broken.

“Taylor is an incredible place, a fact that is being increasingly recognized by people and businesses far and wide,” Mayor Brandt Rydell told The Register.

“We welcome businesses that are good corporate citizens, community-oriented, and committed to offering good jobs and still better opportunity. The City of Taylor is honored to be considered for this critical project and, if selected, we look forward to a long-term relationship benefiting the company and our community for generations to come.”

Speaking of semiconductor makers... Intel CEO Pat Gelsinger said on Tuesday that his processor giant is willing to spend as much as $95bn on chip factories in Europe. Specifically, two facilities may be built at a site on the continent, he said.

The potential site up for grabs is a little over 1,187 acres and located southwest of downtown Taylor off state highway 79. Samsung already has a campus in Austin, Texas. Its chip plant had to temporarily shut down in February this year when the state’s main energy grid suffered a power outage due o a severe winter storm.

“No decision has been made by Samsung on a site for a potential expansion,” a spokesperson for the mega-corp told The Register.

“All sites are under consideration and each community is performing the appropriate due diligence to put themselves in the best position for this opportunity. The actions by Williamson County and City of Taylor are part of their due diligence.” ®

Broader topics


Other stories you might like

  • Twitter founder Dorsey beats hasty retweet from the board
    We'll see you around the Block

    Twitter has officially entered the post-Dorsey age: its founder and two-time CEO's board term expired Wednesday, marking the first time the social media company hasn't had him around in some capacity.

    Jack Dorsey announced his resignation as Twitter chief exec in November 2021, and passed the baton to Parag Agrawal while remaining on the board. Now that board term has ended, and Dorsey has stepped down as expected. Agrawal has taken Dorsey's board seat; Salesforce co-CEO Bret Taylor has assumed the role of Twitter's board chair. 

    In his resignation announcement, Dorsey – who co-founded and is CEO of Block (formerly Square) – said having founders leading the companies they created can be severely limiting for an organization and can serve as a single point of failure. "I believe it's critical a company can stand on its own, free of its founder's influence or direction," Dorsey said. He didn't respond to a request for further comment today. 

    Continue reading
  • Snowflake stock drops as some top customers cut usage
    You might say its valuation is melting away

    IPO darling Snowflake's share price took a beating in an already bearish market for tech stocks after filing weaker than expected financial guidance amid a slowdown in orders from some of its largest customers.

    For its first quarter of fiscal 2023, ended April 30, Snowflake's revenue grew 85 percent year-on-year to $422.4 million. The company made an operating loss of $188.8 million, albeit down from $205.6 million a year ago.

    Although surpassing revenue expectations, the cloud-based data warehousing business saw its valuation tumble 16 percent in extended trading on Wednesday. Its stock price dived from $133 apiece to $117 in after-hours trading, and today is cruising back at $127. That stumble arrived amid a general tech stock sell-off some observers said was overdue.

    Continue reading
  • Amazon investors nuke proposed ethics overhaul and say yes to $212m CEO pay
    Workplace safety, labor organizing, sustainability and, um, wage 'fairness' all struck down in vote

    Amazon CEO Andy Jassy's first shareholder meeting was a rousing success for Amazon leadership and Jassy's bank account. But for activist investors intent on making Amazon more open and transparent, it was nothing short of a disaster.

    While actual voting results haven't been released yet, Amazon general counsel David Zapolsky told Reuters that stock owners voted down fifteen shareholder resolutions addressing topics including workplace safety, labor organizing, sustainability, and pay fairness. Amazon's board recommended voting no on all of the proposals.

    Jassy and the board scored additional victories in the form of shareholder approval for board appointments, executive compensation and a 20-for-1 stock split. Jassy's executive compensation package, which is tied to Amazon stock price and mostly delivered as stock awards over a multi-year period, was $212 million in 2021. 

    Continue reading

Biting the hand that feeds IT © 1998–2022