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.
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.