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Austin: Council Gives Road to Samsung as Incentive for $17 Billion Chip Making Plant

Feature Photo: Samsung Austin Semiconductor, LLC received approval to extend Samsung Boulevard over 11.06 -acres of land. Image: Image: Google Earth/VBX graphic.

Posted 2-2-2021

by Art Benavidez

Austin (Travis County) — City council approved an ordinance vacating two tracts of right of way that will extend Samsung Boulevard, with the hope that Samsung Austin Semiconductor, LLC will choose the city for a major expansion. 

The vote taken last week affects approximately 11.06-acres and would permit Samsung to reconstruct the roadway located south of Parmer Lane, north of the platted but unconstructed East Braker Lane, east of the company’s recently purchased 250-acres of property that is near its current campus.   

The Austin office of the engineering company, Atwell Group, is involved in the roadway development.

The Urban Transportation Commission recommended the project at their Dec. 8 meeting and the Planning Commission approved the design at their Dec. 22 meeting.   

The ordinance comes on the heels of reports, by various national media outlets, that Samsung was looking to make an investment of $17 billion in a U.S. chip making plant.

The Wall Street Journal reported that Samsung was looking to make the investment in a factory to be located in either Phoenix, Austin or in western New York. 

One of the caveats of an Austin manufacturing plant is that Samsung has had chip-making facilities in the area that date back to the 1990s, along with development incentives that have already appeared on city council agendas in Austin and Taylor, which is just up the road in Williamson County.   

The Wall Street Journal also stated that a significant variable for the company moving forward with expansion was whether they would be able to secure U.S. federal government incentives to offset those offered by foreign countries, along with the cheaper costs of manufacturing in other parts of the world 

Bloomberg Technology also reported that the possible Samsung manufacturing site, which would have the capability to produce chips as advanced as three nanometers, would be constructed at a cost of $10 billion.

While proposals are currently in the preliminary phase, the objective for Samsung would be to start construction on a facility in 2021, install major equipment by 2022 and begin operations as early as 2023.

VBX Project ID: 2021-08D0


art@virtualbx.com

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By |2021-02-02T13:15:01-05:00February 2nd, 2021|Construction Preview, Feature Story|

About the Author:

Art Benavidez (Construction News Reporter, Central Texas) is a seasoned journalist with over 15-years of experience in writing breaking news and in-depth features at the local level. He honed his research and reporting skills in newspapers and magazines throughout South and West Texas along with expertise in crafting digital content as Managing Editor of New Image Marketing Research Corporation. Benevidez is a Texas native and graduate of UT-RGV.

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