State records made public July 20 show Samsung Austin Semiconductor wants to add nine more fabrication plants at its Taylor site, creating up to 10,000 jobs and a nearly $185 billion investment in the region.
The South Korea-based semiconductor chipmaker is also turning to the Taylor Independent School District for help that could further temporarily limit its tax payments.
Information released by the Texas Comptroller of Public Accounts Wednesday show Samsung has submitted Chapter 313 applications for appraised tax-value limitations for the proposed nine additional fabrication plants.
If approved, Samsung’s investment in its 6-million-square-foot Taylor site, which potentially could contain a total of 10 plants, would inflate from $17 billion into $184.6 billion.
"Close partnerships with companies like Samsung — who recognize the boundless possibilities Texas has to offer — are bringing greater opportunities to Texans, and this potential investment will bring billions of additional capital to continue growing our world-class business climate and diverse, highly-skilled workforce," said Gov. Greg Abbott. "These new facilities solidify the Lone Star State as the nation's leader in the semiconductor industry, and I thank Samsung for increasing their investment in the hardworking people of Central Texas."
The company originally planned to employ 1,800 workers, but the applications indicate the staffing level could soar by another 8,200.
The initiative potentially is the largest local investment in Taylor history and one of the biggest in foreign investment for the state and even the country, officials said.
Construction is underway, with the plant to be operational by 2024 and continue in construction for another two years. If the additional fabs are approved, they will start coming online one each year from 2034 to 2042, officials said.
Samsung’s applications
Samsung submitted the application May 24, which was accepted by Taylor ISD's board the same day.
The company says it would be difficult to move forward with further investments in Texas if current tax-incentive programs — which will expire at the end of the year — weren’t in place.
“This project is highly competitive, and the company is exploring national and global sites, plus sites in South Korea where Samsung Austin Semiconductor’s parent company is headquartered,” said Samsung in the documents. “Due to the higher tax cost of operating in Texas, the appraised value limitation is a determining factor. Without the appraised value limitation award, the company would likely not locate the project in Texas.”
Each application, including the original Chapter 313 agreement, applies for $80 million of appraised value limitation, which is the minimum qualified investment required for Taylor ISD per application. The property value limitation amount is based on property values at the time of application and may change before approval of any final agreement, according to records.
What is Chapter 313?
Tax Code Chapter 313, also known as the Texas Economic Development Act, is an incentives program in which a taxpayer agrees to build or install property and create jobs in exchange for a 10-year limitation on the taxable property value for school district maintenance and operations tax purposes.
The minimum limitation value varies by school district.
The act was passed in 2001. Its code is set to expire — or “sunset” — at year’s end because the Legislature did not reauthorize it in 2021.
According to earlier stories in the Taylor Press and East Wilco Insider, the multinational chipmaker is still paying millions in local levies on previously undeveloped land.
While Samsung could save millions on property-tax assessments over a decade, Taylor ISD would still reap millions that could go toward staffing pay, better services and other costs.
The federal government has encouraged local business growth by chipmakers such as Samsung to reduce the United States’ reliance on foreign sources of technology. Semiconductors help power everything from cars to cellphones.
In Austin, where Samsung has had a 640-acre facility since the 1990s, the company is looking at adding two more fabrication plants. It has also sought tax incentives from the Manor Independent School District.
To view the documents, visit https://comptroller.texas.gov/economy/local/ch313/agreement-docs.php and scroll down to Taylor ISD's documents.
This is developing story. We’ll have more in the Sunday July 24 edition of the Taylor Press.
