[Asia Economy Reporter Jeong Hyunjin] "Samsung Electronics is evaluating regions based on four factors: accessibility to talent, existing semiconductor manufacturing ecosystem, proximity to markets, and strong public-private partnerships."
As Samsung Electronics negotiates with several U.S. local governments including Texas, Arizona, and New York regarding new and expanded semiconductor factories, Taylor City in Williamson County, Texas has emerged as a leading candidate. This is due to the disclosure of documents Samsung submitted to Texas last month. This news follows Samsung's announcement of a $17 billion U.S. foundry investment during the Korea-U.S. summit in May, but since nothing has been finalized yet, market interest in the investment's destination is growing.
According to industry sources on the 17th, Samsung Electronics submitted an application requesting tax incentives and other benefits to the Taylor Independent School District (ISD) on the 29th of last month, and the application process was completed on the 6th. Through this application, Samsung revealed it is considering building a semiconductor factory in Taylor City within Williamson County. Taylor City is located near Austin, where Samsung's U.S. semiconductor plant is situated, about a 30-minute drive away. The local media outlet Austin Business Journal reported, "The Taylor Independent School District received an application last month under the codename 'Project Collin' for the tax incentive program 'Chapter 313' for the first time."
According to the documents Samsung submitted to Texas authorities, Samsung stated, "Samsung Austin Semiconductor is reviewing Williamson County, Texas as a site for a new manufacturing facility, and if Williamson is selected as the location for the new project, a building approximately 6 million square feet (about 557,400㎡) in size will be constructed." Samsung plans to invest more than $17 billion in this project and expects to create 1,800 high-income jobs.
Samsung Electronics explained, "This project will include a new semiconductor manufacturing facility, which will produce cutting-edge semiconductors for Samsung Foundry business," adding, "The proposed investment will be used to purchase production equipment for processes such as manufacturing and processing semiconductors in a cleanroom environment and to build a new wafer fab." Samsung anticipates that if the investment decision is made, construction will begin in the first quarter of next year, with mass production starting by the end of 2024. Samsung stated, "Considering the strong community relationships and successful production over the past 25 years in Texas, Samsung Austin Semiconductor hopes to continue investing in this region and state."
However, Samsung has not yet finalized the site. A Samsung Electronics official said, "Taylor, Texas is just one of several candidates initially considered, including Austin, New York, and Arizona, and no decision has been made yet." Samsung also responded that it does not currently own land in Taylor City according to the documents. As mentioned in the documents previously submitted for Austin, Samsung reiterated, "This project is highly competitive, and we are considering candidates including Arizona and New York in the U.S., as well as Korea, where Samsung's headquarters are located."
Notably, through this document, Samsung also mentioned other candidate locations such as Goodyear and Queen Creek near Arizona, and Genesee County in New York, in addition to Texas. While Samsung had previously disclosed the states involved in negotiations through documents submitted for Austin, this is the first time detailed local areas have been revealed. Media reports have indicated that Samsung is considering these areas, and in the case of Goodyear and Queen Creek in Arizona, attention has focused on whether Samsung will participate in land auctions.
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