Samsung Austin Semiconductor is expected to delay mass production at its Taylor advanced chip manufacturing foundry until 2025, but will be partially operational by the end of 2024, according to reports from a South Korean news outlet.
The local division of the Samsung Electronics Co. Ltd. is well underway on the $17 billion construction project in Taylor that will eventually employ nearly 2,000 people and is drawing suppliers to the area who will hire thousands more workers.
The news, first reported by Korean business newspaper Seoul Economic Daily, came from a recent speech given by Samsung Electronics President Siyoung Choi at an industry event in San Francisco.
It is unclear why the time-
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Samsung has been an amazing partner and has always delivered on its promises.”
- Williamson County Judge Bill Gravell and Taylor Mayor Brandt Rydell table changed by as much as six months, but Taiwanese competitor Taiwan Semiconductor Manufacturing Co. recently said production at an Arizona semiconductor fabrication foundry is now postponed to 2025 instead of 2024.
The firm cited a shortage in skilled workers in construction and machine-installation technicians.
“The Samsung Taylor fab is on target to be operational by the end of 2024,” said Samsung Austin Semiconductor spokeswoman Michele Glaze in a written statement. “We cannot comment on timing for mass production.” Glaze declined to say whether the timing affects the tax-break covenants between the company, the city of Taylor, Williamson County and Taylor Independent School District.
The property tax breaks from those three entities and a state grant come to nearly $1 billion “Williamson County and Taylor have a strong relationship with Samsung. Samsung has been an amazing partner and has always delivered on its promises to Williamson County and the city of Taylor,” Williamson County Judge Bill Gravell and Taylor Mayer Brandt Rydell said in a jointly issued written statement.
“The construction at the plant in Taylor is still ongoing and there have not been any issues with local permitting regarding the construction. The timeline for manufacturing at the plant is completely at the discretion of Samsung,” Gravell and Rydell wrote. “We look forward to continuing this strong relationship with Samsung for generations to come.”
Area-economic development officials could not be reached before press time, but have previously said the economic impact of Samsung already is rippling through Taylor, the county and even nearby cities in neighboring counties.
Sales-tax revenue in Taylor is up by more than $1 million each month, and nearly 8,000 construction workers swarm the site of the plant, according to officials. Expected demand for the new generation of advanced chips could lead to as many as 10 fab plants on the Taylor site over time, creating thousands of additional jobs. Economic development agreements are already in place for that eventuality with the city, school district and county.
Suppliers are making their way from South Korea to Central Texas and multiplying the economic impact, while unrelated manufacturing companies have taken notice of Williamson and other counties surrounding Travis County because of Samsung’s Taylor investment.
