Samsung reportedly asking a huge tax incentive for its Austin facility

Samsung has been eyeing Austin in Texas to establish its chip factory in the country. According to fresh sources, the South Korean-based tech giant has submitted paperwork to Texas officials. It has requested a billion dollars in tax incentives to set-up its $17 billion chip factory.

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Reports suggest that according to the filed documents, Samsung plans on bringing 1,800 permanent jobs to the factory over the first 10 years, with an average starting salary of around $66K. but to make it happen, the tech giant is asking for a break on its property taxes: it’s looking for a 100 percent break on its payments to Travis County for 20 years, which the company estimates would save it roughly $718 million, and a 50 percent break on the taxes to the City of Austin for five years, with an estimated $87 million.

According to the document, Samsung calls the project “highly competitive,” and says that “due to the higher tax cost of operating in Texas, the appraised value limitation is a determining factor. Without the appraised value limitation award, the company would likely locate the project in Arizona, New York, or Korea.” It only seems that the South Korean-based tech giant is still to figure out where to place its factory.

The deal which Samsung is asking from the state is nothing new, as large-scale industries have always asked for support from the government before setting up their plants. But what Samsung is asking for quite a lot. Of course, Samsung’s chip manufacturing plant will cost a lot to be made but also promises to generate more employment numbers and pay higher salaries. It seems that Samsung may use the billion-dollar figure as an opening negotiation, but we have to wait and see for the official news to be made public.

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