Texas Officially Announces "Samsung Electronics Semiconductor Plant Attraction"... Tax Reduction Worth Over 10 Trillion Won

Samsung Electronics' Largest Overseas Single Investment Ever
Taylor City "Most Significant Since 1870s Railroad Project"

Greg Abbott, Governor of Texas, USA
Photo by AP News

[Asia Economy Reporter Cho Hyun-ui] On the 23rd (local time), the state of Texas officially announced that Samsung Electronics has finalized Taylor City, Texas as the site for its $17 billion (approximately 20 trillion KRW) second foundry (semiconductor contract manufacturing) plant.

Governor Greg Abbott held a press conference at the governor's residence in the afternoon with Samsung Electronics Vice Chairman Kim Ki-nam, Taylor Mayor Brent Riedel, Senator John Cornyn, and other officials, announcing this decision and emphasizing that it is "news that will impact not only Texas but the world."

Samsung Electronics' second plant is expected to begin construction as early as the beginning of next year and to be capable of mass semiconductor production by the end of 2024. Texas projects that the plant will create about 2,000 advanced technology jobs, at least 6,500 construction-related jobs, and thousands of indirect jobs.

Governor Abbott said, "Samsung Electronics' second plant will bring many opportunities to Texas residents and will play a key role in continuing the reputation of the state's semiconductor industry." He added, "Through expanded cooperation with Samsung Electronics, we hope Texas will become a powerhouse of advanced technology and economy."

This investment is the largest single overseas investment by Samsung Electronics to date. Texas explained that the total investment includes buildings, machinery, equipment, and real estate improvements. Governor Abbott stated, "Since 1996, Samsung Electronics has invested a total of $35 billion (approximately 41 trillion KRW) in Texas," adding, "This is the largest amount of foreign direct investment in the state."

The total tax incentives Samsung Electronics receives from Taylor City and other local governments are estimated to exceed $1 billion (approximately 1.2 trillion KRW). Texas announced, "We plan to provide Samsung Electronics with subsidies worth $27 million (approximately 3.21 billion KRW) and have additionally proposed veteran hiring subsidies worth $20,000 (approximately 23.8 million KRW)."

Samsung Electronics Vice Chairman Kim Ki-nam said, "This year marks the 25th anniversary of Samsung Electronics' semiconductor entry into the United States," and added, "The establishment of this second plant will be a cornerstone for preparing Samsung Electronics' new future." Taylor Mayor Brent Riedel said, "Samsung Electronics' decision to select Taylor City as the site for its second plant will greatly develop the local economy, comparable to the start of the Great Northern Railroad project in the 1870s."

This content was produced with the assistance of AI translation services.