Plant expansion to bring 500 new jobs

AUSTIN (KXAN) - An expansion of a semiconductor plant will bring 500 jobs to Austin, thanks to Samsung.

The South Korea computer chip manufacturer said it is planning a $3.6 billion upgrade to its Northeast Austin plant, with construction scheduled to begin sometime this summer.

U.S. Chamber of Commerce officials said Samsung's investment is the largest private capital investment in the country so far this year.

City officials, including Leffingwell and City Manager Marc Ott , announced the economic development at 10 a.m. Wednesday at City Hall and said it solidifies Austin's place in the tech world.

"We consider this deicison by Samsung to be a strong vote of confidence in our city, another indication that Austin is seen around the world as an attractive place to do business," said Austin Mayor Lee Leffingwell .

Originally built in 2007, the Fab 2 plant will be expanded and will bring hundreds of jobs to the city.

Samsung received more than $200 million in economic incentives from the city and the state for construction of the original plant. However, no economic incentive will be given by the city or state for the expansion.