A new Samsung factory bringing lots of jobs (and subsequent real estate investment) is on the horizon for a sleepy Texas town called Taylor, some 30 miles outside Austin. The product: computer chips (also called semiconductors).
About the Samsung chip factory
This is a $17 billion South Korean semiconductor plant we're talking about, with 6 million square feet of buildings that will encompass 1,200 acres and provide some 1,800 jobs. This particular factory is in the foundry business, which makes chips for corporations, including Apple.
Building this factory in the United States will help Samsung in its plans to become bigger than the current largest producer of computer chips, the Taiwan Semiconductor Manufacturing Co. (TSMC).
Not only will this Samsung factory greatly benefit the town of Taylor, it will benefit the United States to have a major producer of cutting-edge computer chips located here. As it now stands, Americans are dependent on Taiwan for computer chips.
About Taylor, Texas
The Taylor, Texas, Chamber of Commerce describes Taylor as "the quintessential small Texas town … at the start of something big." The "something big" wasn't a specific reference to the Samsung chip factory, as the decision to choose Taylor is still under discussion -- but some say the decision has been made. (See below.)
Taylor has been bracing for something, though. In its attempt to lure the factory, the town recently approved giving tax incentives to Samsung for the next 30 years. (Samsung was also considering alternative sites, such as Austin -- where it already has a factory -- Arizona, New York, and South Korea.)
The tax incentives offered include a grant equivalent to 92.5% of the property tax for the first 10 years, 90% for the following 10 years, and 85% for the 10 years after that. Taylor really wants this plant.
Trivia note and the Texas connection: The first computer chip was developed in 1958 at Texas Instruments.
About the chip industry
TSMC, founded in 1987, has dominated the planet regarding the production of computer chips, a product the modern world has since become dependent on. Computer chips are necessary for computers, of course. But they're also used in almost all electronics, appliances, cellphones, cars, and airplanes and will be necessary even more in the future with the rise of artificial intelligence and the Internet of Things.
TSMC is located in Taiwan. The pandemic has shown it's not wise for countries to be totally dependent on Taiwan -- which for all intents and purposes means China. The evidence is the severe computer chip shortage we're currently undergoing, which makes it difficult for U.S. citizens to get the products we want -- and if we can get them, they're more expensive.
The Millionacres bottom line
Discussions are currently underway between Samsung and the city of Taylor, but an anonymous source told the Korea JoongAng Daily that it's a done deal for Taylor. Even if that source doesn't pan out, it looks likely Taylor will be chosen. Once plans are finalized, production should begin by the fourth quarter of 2024.