Texas city provides measures such as large-scale tax reductions and exemptions for Samsung

In May of this year, President Moon Jae-in of South Korea visited the United States, accompanied by high-level executives from South Korean companies such as Samsung and SK Hynix. During this period, Samsung also announced that it will invest approximately $17 billion in the United States to build an advanced process wafer fab, which will create 1,800 jobs. Since Samsung has its own wafer fab in Austin, Texas, which has been in operation for many years, it is generally believed that it will still choose this area to facilitate resource integration.

Image: Samsung

According to Reuters, Texas city has recently been very active in seeking Samsung’s fab to settle in the area. The local government stated that if Samsung eventually chooses to build a new fab in the local area, it will provide maximum tax relief. A proposed resolution published by the local government on its official website shows that the plan provides tax relief equivalent to 92.5% of estimated land tax for the first ten years, 90% for the next ten years, and 85% for the next ten years.

Samsung plans to start construction at the end of this year or early next year and start operations in 2024. It will use EUV lithography equipment and adopt a 5nm process node. At present, the process of Samsung’s wafer fab in the United States has only advanced to 14nm. In the future, the use of the 5nm process can further meet the needs of customers in the United States.