SEOUL, July 22 (Yonhap) — Samsung Electronics Co. has floated the idea of investing nearly $200 billion to build 11 more chip factories in the United States over the next two decades, it revealed on Friday. documents filed with the State of Texas.
The proposed investment is outlined in the South Korean tech giant’s applications filed with the Taylor and Manor school districts, seeking tax relief for the potential construction of 11 new chip manufacturing facilities in the state, nine to Taylor and two in Austin.
Samsung already has a large chip factory in Austin, while it is building a $17 billion factory in nearby Taylor.
The world’s largest memory chip maker has made no guarantees that it will commit to the proposed $192.1 billion investment.
“We do not have specific construction plans at this time, however, the Chapter 313 applications to the State of Texas are part of a long-term planning process by Samsung to assess the viability of potential construction of ‘additional manufacturing plants in the United States,’ the firm said in a statement.
Chapter 313 “allows public school districts to provide tax incentives to businesses that invest in their communities,” according to the Texas Comptroller’s Office. And it is due to expire at the end of the year, which means businesses must reapply in order to continue benefiting from the tax program.
Texas Governor Greg Abbott welcomed the proposal. “This potential investment will bring billions in additional capital to continue to develop our world-class business climate and our diverse and highly skilled workforce,” he said in a statement.
Abbott also urged the U.S. Congress to pass the CHIPS (Creating Helpful Incentives to Produce Semiconductors for America) Act to help the United States cement “a secure semiconductor supply chain, which is vital to the economy and national security of our country.
In March, Samsung called on Washington to give foreign chipmakers an equal chance to compete for state incentives under the law to boost production capacity and address the ongoing chip shortage.
Washington should “ensure that all eligible companies are able to compete for CHIPS Act incentives to pursue semiconductor projects in the United States on an equal footing, regardless of their country of incorporation” , Samsung said in a document submitted to the US Department of Commerce.
In this way, the law could achieve its goals of “increasing semiconductor capacity in the United States,” Samsung said, by encouraging “new private capital investment in the semiconductor ecosystem.”
Samsung has run manufacturing operations in the United States for more than four decades and employs more than 20,000 Americans.
The CHIPS Act aims to boost US chip manufacturing volume and capacity and strengthen supply chains, ultimately restoring its manufacturing prowess.