Samsung Chums Texas
Samsung Electronics’ (005930.KS) S2 semiconductor fab in Austin, Texas and its sister fab in Taylor (under construction) could have other siblings as Samsung has submitted paperwork for 11 potential semiconductor fabs that it could build in Texas over the next two decades. The paperwork, which is required when applying for tax subsidies, noted the potential for a total of $192b in spending for the 11 fabs, which would cost between $12b and $23b and provide ~900 jobs each, although the Austin fab employs ~10,000 total. Samsung indicated that it had no specific construction plans for these potential fabs and is spending $17b on the Taylor project, but indicated a target of 2034 and extending out until 2042 for the last two projects.
The tax breaks on the real estate are estimated to be as high as $4.8b and usually last for 10 years. As the US Chips Act winds its way through Congress it would seem an appropriate time to allude to a desire to build semiconductor capacity in the US, although these plans do not commit Samsung to anything more than the Taylor project, but it certainly won’t hurt to see if it stirs up some excitement from other potential fab locations in and outside of the US. Samsung has two fabs in China and three in South Korea but none in Europe.
The tax breaks on the real estate are estimated to be as high as $4.8b and usually last for 10 years. As the US Chips Act winds its way through Congress it would seem an appropriate time to allude to a desire to build semiconductor capacity in the US, although these plans do not commit Samsung to anything more than the Taylor project, but it certainly won’t hurt to see if it stirs up some excitement from other potential fab locations in and outside of the US. Samsung has two fabs in China and three in South Korea but none in Europe.
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