TAYLOR, Texas (KXAN) — Samsung Electronics Co. is set to announce plans to build a $17B chipmaking plant in Taylor, the Wall Street Journal reported Monday.
Samsung has indicated in its application filings that it wants to start construction in January 2022.
A spokesperson for the City of Taylor tells KXAN News it could not confirm the decision Monday night, saying “out of respect to the companies we work with, it is our policy not to comment on economic development projects until an announcement has been made by the company.”
A local source tells KXAN they expect an official announcement Tuesday. The Wall Street Journal also reports Governor Greg Abbott is set to make an “economic announcement” Tuesday.
Taylor and Williamson County leaders voted unanimously in September to approve multiple incentives with Samsung, worth millions of dollars, according to the Austin Business Journal.
The county says all agreements passed are performance-based, meaning Samsung wouldn’t get any tax rebates until they met certain standards.
County officials say the plant would create 1,800 direct jobs and support nearly 10,000 total jobs.
“Every job that’s created in a manufacturing plant, six jobs are created outside of it, when you think about all the materials moving in, you know, people driving trucks, flying planes, bringing in parts and equipment for these plants,” says Ed Latson, executive director of the Austin Regional Manufacturers Association (ARMA). “The accountants, the lawyers, the professional services that go to support these individuals. It creates a lot of trickle down effect in the economy.”
Latson acknowledges one challenge moving forward will be building up Central Texas’ workforce to meet the demand in jobs. He estimates his industry will need about 20,000-25,000 new workers over the next five years.
“They’re going to have to address the challenges that are in the region for everybody,” Latson says. “But, you know, I fully believe they can overcome those.”
Samsung has been scoping out a nearly 1,200 acre area southwest of downtown Taylor for its new plant, which could be up to 6 million square feet, according to Williamson County.
Last week, Taylor Independent School District trustees approved a Chapter 313 agreement with Samsung, which gives the company a break on property taxes, an attorney who worked on the deal told KXAN.
He also told KXAN the deal would save Samsung about $292 million in gross taxes over 15 years. After additional payments to the school district, that total in savings comes down to about $246 million, he said.
The city and county agreements would also require Samsung to provide internships to at least 24 Taylor ISD students per year.
This story will be updated as more information becomes available.