Samsung Submits Application to Secure Tax Benefits in Texas, USA... Includes 252 Trillion Won Investment Plan (Comprehensive)

Samsung Electronics Taylor's Foundry Plant Site
[Image Source=Yonhap News]

[Asia Economy Reporter Park Sun-mi, New York=Special Correspondent Jo Seul-gi] Samsung Electronics has submitted an application containing a long-term investment plan worth 252 trillion won to secure incentives ahead of the termination of Texas's tax reduction program 'Chapter 313'.

On the 21st (local time), the Wall Street Journal (WSJ) cited the tax benefit application submitted to Texas and reported that Samsung Electronics plans to invest $192.1 billion (approximately 252 trillion won) in Texas over the next 20 years to establish 11 semiconductor factories.

According to the application, Samsung Electronics plans to invest $167.6 billion in Taylor, Texas, where it is currently building foundry (semiconductor contract manufacturing) plants, to create nine semiconductor production plants, and invest $24.5 billion in Austin to establish two new plants as part of its long-term plan. Samsung Electronics stated that this could create more than 10,000 jobs.

Submitting the application does not mean Samsung Electronics will carry out the investment as is. A Samsung official explained, "The investment details in the application reflect long-term plans," adding, "As Texas is approaching the end of the tax reduction program, not only Samsung Electronics but also other semiconductor companies in the region submitted investment plans before the application deadline."

Chapter 313 is an incentive program in Texas that provides a 10-year property tax reduction to companies that make investments above a certain scale and create jobs. Ahead of the program's end at the end of the year, the state government accepted related applications from semiconductor companies in the region until the 1st of last month.

If an application containing an investment plan is not submitted by the deadline, companies will not be eligible for tax reduction benefits regardless of any future investments. For this reason, other semiconductor companies such as NXP, Infineon, and Texas Instruments are also known to have submitted applications along with Samsung Electronics.

An industry insider said, "Even if Samsung Electronics submitted the largest possible investment plan to receive tax benefits for future expanded investments in the U.S., as the U.S. Congress is preparing unprecedented support legislation to foster the semiconductor industry, U.S. investments are expected to gradually increase."

Texas Governor Greg Abbott also stated in a press release, "The new factories will enable Texas to solidify its position as the leader of the semiconductor industry in the U.S.," and added, "We thank Samsung for increasing its investment."

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