Taylor: Samsung Announces They Will Construct $17 Billion Facility in Williamson County
Feature Photo: Texas Gov. Greg Abbott shakes hands with Samsung CEO Dr. Kinam Kim as they announced that the company intends to bring a $17 billion facility to Taylor. Image: Greg Abbott Facebook
Taylor (Williamson County) — After months of negotiating economic development agreements with Travis and Williamson counties, Samsung announced its decision to construct a new $17 billion semiconductor factory near Taylor.
In September, VBX reportedthat Williamson County, in conjunction with the City of Taylor, presented an incentive package to Samsung in hopes of securing the deal that finally came to fruition.
The facility will help boost production of advanced logic semiconductor solutions that power next-generation innovations and technologies.
Samsung is committed to supporting customers globally by making advanced semiconductor fabrication more accessible and meeting surging demand for leading-edge products.
“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future,” said Kinam Kim, Vice Chairman and CEO, Samsung Electronics Device Solutions Division. “With greater manufacturing capacity, we will be able to better serve the needs of our customers and contribute to the stability of the global semiconductor supply chain.”
Kim added the company was proud to bring jobs, along with training and talent development to the community as the company Samsung celebrates 25 years of semiconductor manufacturing in the U.S.
“In addition to our partners in Texas, we are grateful to the Biden Administration for creating an environment that supports companies like Samsung as we work to expand leading-edge semiconductor manufacturing in the U.S.,” Kim said. “We also thank the administration and Congress for their bipartisan support to swiftly enact federal incentives for domestic chip production and innovation.”
Groundbreaking for the facility is expected in the first half of 2022 with the target of having the facility operational by the second half of 2024, according to the press release.
The Taylor site will span more than five million square meters and is expected to serve as a key location for Samsung’s global semiconductor manufacturing capacity along with its new production line in Pyeongtaek, South Korea.
The Chapter 381 pact proposed in September calls for the plant to be on 1,187.5 acres located south of Highway 79 and west of FM 973.
The Samsung semiconductor plant would be in Taylor’s extraterritorial jurisdiction with the city proposing several road improvements as an incentive. Image: Williamson County
Samsung would invest $6 billion in infrastructure, land and building costs and $11 billion worth of personal property, machinery and equipment.
The project will include approximately six million square feet of buildings to be developed in four phases, according to the proposed development agreement from September.
Phase I — build 2,500,000 square feet of the project by Dec. 31, 2023.
Phase II — build an additional 800,000 square feet of the project by Dec. 31, 2024.
Phase III — build an additional two million square feet of the project by Dec. 31, 2025.
Phase IV — build the remaining 700,000 square feet (for a total of six million square feet) by Jan. 31, 2026
The total expected investment of $17 billion, including buildings, property improvements, machinery and equipment, will mark the largest-ever investment made by Samsung in the U.S.
“Companies like Samsung continue to invest in Texas because of our world-class business climate and exceptional workforce,” said Governor Greg Abbott. “Samsung’s new semiconductor manufacturing facility in Taylor will bring countless opportunities for hardworking Central Texans and their families and will play a major role in our state’s continued exceptionalism in the semiconductor industry. I look forward to expanding our partnership to keep the Lone Star State a leader in advanced technology and a dynamic economic powerhouse.”
Along with Austin, the company had also looked at Phoenix and upstate New York as potential suitors for the new facility and the decision to invest in Taylor was based on multiple factors, including the local semiconductor ecosystem, infrastructure stability, local government support and community development opportunities. In particular, the proximity to Samsung’s current manufacturing site in Austin, which allows the two locations to share the necessary infrastructure and resources.
The project will create over 2,000 high-tech jobs, thousands of indirect jobs, and a minimum of 6,500 construction jobs.
A Texas Enterprise Fund (TEF) grant of $27,000,000 has been extended to Samsung for their job creation. In addition, Samsung has been offered a $20,000 Veteran Created Job Bonus.
“As we add a new facility in Taylor, Samsung is laying the groundwork for another important chapter in our future,” said Kim. “With greater manufacturing capacity, we will be able to better serve the needs of our customers and contribute to the stability of the global semiconductor supply chain. We are also proud to be bringing more jobs and supporting the training and talent development for local communities, as Samsung celebrates 25 years of semiconductor manufacturing in the United States.”
“Samsung Austin Semiconductor has been proud to call Texas home for more than 25 years,” said Dr. Sang Sup Jeong, President of Samsung Austin Semiconductor. “We are excited about our growth and future opportunities in Central Texas and appreciate the support from all Central Texas leaders.”
“Samsung’s decision to locate its cutting-edge semiconductor fabrication plant in Taylor is the single most significant and consequential development for the local economy since the International & Great Northern Railroad laid tracks here in the 1870’s,” said Taylor Mayor Brandt Rydell. “The City of Taylor is honored to have been selected by Samsung as the site for this critically important project, and we look forward to a long-lasting and mutually-beneficial relationship between our community and the company.”
“Williamson County has again proven to be a leader in attracting the world’s top technology companies,” said Williamson County Judge Bill Gravell. “To Samsung, I want to say ‘Welcome Home.’ We want to thank Governor Abbott for his amazing leadership and help on this project. With the addition of Samsung on the east side of our county, Apple on the west side, and Dell Computers world headquarters in the center, Williamson County is now home to the technology superhighway of the world.”
“As one of the largest foreign investment economic development projects in United States history, to say Samsung’s commitment to this project is monumental would be a huge understatement,” said Taylor Economic Development Corporation President and CEO Mark Thomas. “The Taylor Economic Development Corporation with its partners at Williamson County, the City of Taylor and the Office of the Governor are beaming with pride to bring this important advanced chip manufacturing facility to the City of Taylor, Williamson County, the Austin MSA, State of Texas and the United States of America.”
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.