[Exclusive] Samsung Considers 2 Additional Sites in Arizona and 1 in New York Alongside Austin as Leading US Factory Location

Revealed Through Revised Proposal Submitted to Austin City

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Samsung Electronics is currently exploring the optimal site for expanding its semiconductor factory in the United States, and it has been additionally revealed that the company is considering two locations in Arizona and one location in New York. This information was disclosed amid negotiations with Austin, Texas, the most likely candidate, over tax incentives, suggesting that Samsung Electronics is negotiating investments with local governments over four sites in the U.S.

According to the city of Austin and others on the 2nd (local time), a law firm representing Samsung Electronics in the Austin area submitted a revised proposal on the 26th of last month regarding tax reduction for a new investment of $17 billion (approximately 19.1 trillion KRW). In the revision, Samsung stated, "The additional locations under consideration for the proposed project include two sites in Arizona and one site in New York," adding, "All three alternative sites possess the necessary land and can expand the required infrastructure within the deadline to meet the accelerated schedule of this project."

They also added, "Samsung is actively negotiating with the three locations, each offering substantial subsidies or refundable tax credits for necessary infrastructure improvements, as well as strong property tax reduction benefits."

Arizona and New York were initially mentioned as the most likely alternatives to Austin that Samsung Electronics was considering. The revised proposal, submitted about a month after the initial one, included more specific details about the areas under review in Arizona and New York. This move is interpreted by some as an attempt to pressure Austin, where negotiations are effectively ongoing.

Currently, Samsung Electronics' Austin plant has been shut down since the 16th of last month due to a record-breaking cold wave in the U.S. Some have speculated that this could become a factor hindering investment. Considering that the daily sales of the Austin plant last year were about 10.7 billion KRW, the damage caused by the plant shutdown has already exceeded 160 billion KRW.