Samsung in negotiation with Austin for new chip plant

Samsung Electronics was considering Austin, Texas, for a new US$17 billion chip plant, according to a report by Reuters.

The South Korean tech giant is seeking tax abatement of US$805.5 million over 20 years from Travis County and the city of Austin, documents seen by Reuters showed.

The documents say the project would involve building out 7 million square feet (650,000 meter-square) of new space on a 640-acre (259-hectare) site that Samsung already owns, the report said.

Construction will begin in the second quarter of this year. The plant will start operations in the third quarter of 2023, the report said.

The plant will contribute to create 1,800 jobs for the next ten years, Samsung had said in the documents.

However, Austin wasn’t the only place under consideration and the company was also considering Arizona and New York, as well as South Korea.

Samsung confirmed to Reuters that it it was considering expanding its chip facilities, but no decision has been made yet.

Last October, is was revealed the company bought 258-acre of land near its plant in Austin, while also seeking the approval for development from the local city council.

Last month, asked on where it plans to build a new chip plant, the company said nothing has been decided yet.