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Samsung tells Texas it wants to create 1,800 jobs with a $17 billion factory in Austin

Samsung has submitted paperwork to Texas officers, requesting a billion {dollars} in tax incentives to make Austin the long run house of the corporate’s $17 billion chip factory, as noted by Bloomberg and reported final month by the Austin American-Statesman. In the documents, which have been filed in January, the corporate says it plans on bringing 1,800 everlasting jobs to the factory over the primary 10 years, with a median beginning wage round $66K.

In return, Samsung is asking for a break on its property taxes: it’s in search of a one hundred pc break on its funds to Travis County for 20 years, which the corporate estimates would save it roughly $718 million, and a 50 p.c break on the taxes to the Metropolis of Austin for 5 years, with an estimated $87 million. It additionally wants the state to subsidize its property tax funds to the varsity district.

It looks like Samsung remains to be making an attempt to determine the place to put the factory: in the paperwork, the corporate calls the mission “extremely aggressive,” and says that “[d]ue to the upper tax price of working in Texas, the appraised worth limitation is a figuring out issue. With out the appraised worth limitation award, the corporate would probably find the mission in Arizona, New York or Korea.”

If Samsung chooses Austin, it can be increasing its current plant there — the corporate already has a chip-making fab in the town, which has been there since 1997. The factory at the moment employs round 10,000 folks, and the Austin American-Statesman notes that Samsung has not too long ago purchased 257.7 acres of land close to its current factory.

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Searching for incentives from cities and states is nothing new, however Samsung is asking for fairly a lot, particularly in contrast to Tesla, which can also be constructing a factory in Austin: the automobile producer solely received round $60 million in tax rebates from the county and faculty district. The 2 deliberate factories aren’t instantly comparable due to variations in price, employment numbers and salaries, and extra, however Samsung’s nonetheless in search of an order of magnitude greater than Tesla acquired. It may very well be that Samsung used the billion-dollar determine as a gap negotiation, however any offers being labored on don’t but appear to be public.

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