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| An actual view of Samsung Electronics' foundry chip-making plant in the U.S. state of Texas is seen in this file photo. Korea Times file |
By Kim Yoo-chul
Samsung Electronics denied reports Monday that the city of Taylor in Williamson County, the U.S. states of Texas, has been decided on as the location for its new foundry semiconductor plant.
"Regarding the location of Samsung's new semiconductor plant, we are in the process of reviewing details such as incentive packages and other forms of administrative support submitted by cities in different U.S. states," a Samsung official said Monday.
Despite the company's official denial, procedural steps were reportedly underway for a meeting Thursday (KST) among Taylor, Williamson County and Samsung Electronics to discuss measures that would support Samsung Austin Semiconductor's selection of the city as the site for the new plant
At the meeting, the Taylor City Council is set to authorize City Mayor Brandt Rydell to execute a "tax abatement agreement, a development agreement and a development review services reimbursement agreement," according to reports.
While Samsung Electronics stressed the meeting doesn't necessarily mean it has reached an agreement with the city and county for the new plant, investors and market watchers speculate the company is close to deciding on Taylor as the location. Located 60 kilometers away from Austin ― where Samsung already operates massive foundry chip facilities ― the city has been considered as the prime spot for the new investment.
In February this year, heavy snow in Texas halted the operation of the company's Austin plant due to a power outage, which resulted in financial losses and awakened Samsung to the need to explore new places other than Austin to hedge against infrastructure-related risks. In June this year, Samsung Electronics requested Taylor to provide $314 million in tax incentives over the next 10 years including property tax value limits, which was approved by Taylor Independent School District.
During President Moon Jae-in's first face-to-face summit with U.S. President Joe Biden in May, Samsung announced plans to construct a second foundry line in the United States. However, questions on the details and a project timeline were put on hold. Biden earlier proposed $50 billion in support for semiconductor manufacturing, which has attracted major companies such as Intel, and TSMC of Taiwan to review sizable new investments.
The release from prison on parole of Samsung chief Lee Jae-yong raised the possibility that he would address pending investment plans in the United States and other areas as these require his signoff which he was not legally permitted to do while incarcerated.
