Samsung Austin Semiconductor’s $17 billion investment in Taylor could be nine-fold higher in the coming decades than what it is today.
At a special called Taylor Independent School District board meeting Dec. 5, trustees approved nine additional property tax abatement agreements with Samsung just before the Chapter 313 incentives program were set to expire at the end of this year.
Currently, the chip manufacturer is building a 1,200-acre semiconductor facility expected to employ 2,000 people west of the city, and open in 2024.
Company and area officials lauded the move.
“Samsung is pleased with Taylor ISD’s passage of the proposed Chapter 313 applications as Samsung is constantly exploring various opportunities to strengthen our leadership in the foundry industry,” said Michele Glaze, company spokesperson. “Having already initiated a $17 billion investment in Taylor, Samsung’s vision is to continuously enhance its ability to provide U.S. companies and markets with advanced semiconductor technologies needed to stimulate growth and fuel innovation for the future. However, no final decisions have been made; these agreements are for potential, long-term planning purposes only.”
According to state law, chapter 313 agreements have provided industries coming to Texas a 10-year break on property taxes.
“Nine 313 applications were approved, and that opens the door for Samsung being able to build nine more fabrication plants on that site,” said Superintendent Devin Padavil. “It’s basically a 10-year exemption from M and O taxes, and then they have to make direct payments to the school district instead. Those direct payments would be spread out over the course of 20 years, all the way to 2040.”
According to Samsung, If completed, it is estimated that the total investment in Taylor would be about $167 billion, and would take place between 2025 and 2042, and would create 8,200 more direct paying jobs.
Mark Thomas, the president and CEO of the Taylor Economic Development Corporation, which helped bring the corporation to the area, said the 313 agreement incentives played a large role in bringing the Korea-based semiconductor manufacturer to Taylor.
“It’s a very big difference maker between us and other communities, other states, and other countries because when you are talking about countries like this, there are countries that are going after this,” Thomas said. “When you get up to this size, we have been told this is the largest economic development project in what is called foreign-direct investment, meaning companies from outside the country making investment in the United States. This is the largest one ever in Texas.”
Thomas said he didn’t know if Samsung would ultimately move forward with all nine fabrication sites, but that it was smart for them to take advantage of this incentive in case they wanted to in the future.
“I think it was good planning on Samsung’s part to get those preapproved in case they ever need them,” Thomas said. “That is exactly what it is. It’s just good planning.
Padavil said he thought this investment was a good deal for the community.
“The potential positive benefits to our kids are really great,” Padavil said. “Thinking of the career opportunities, if Samsung actually builds all 10 potential plants, the job opportunities for the citizens of Taylor could be huge. This isn’t quite the fanfare of the first Samsung announcement, but the potential benefits over the next two decades could literally be nine times over.”
Mayor Brandt Rydell also applauded the move.
“Samsung has quickly established itself as a valued community partner even as it moves forward with its $17 billion investment in Taylor,” said Mayor Brandt Rydell. “The potential for future phases involving even larger investment is an exciting prospect, as it could open up still greater possibilities for direct and long-lasting benefits for our local economy and opportunities for Taylorites, including our students, for decades and generations to come. We look forward to growing our already strong relationship with Samsung as we head into a bright and promising future for the company and for Taylor.”
