The Wall Street Journal: Samsung set to announce $17 billion chip plant in Texas

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Samsung Electronics Co. plans to build a roughly $17 billion chip-making plant in Taylor, Texas, according to people familiar with the matter, a mega investment by the South Korean tech giant, as the Biden administration pushes for an expansion of U.S. semiconductor production.

An announcement could come as early as Tuesday, people familiar with the matter said. Gov. Greg Abbott is scheduled to make an “economic announcement” Tuesday at 5 p.m. local time.

The Taylor facility, located in central Texas, plans to create around 1,800 jobs, though chip production isn’t expected to start until the end of 2024, according to documents Samsung 005930, +0.27%  had previously filed with Texas authorities. To woo Samsung, Taylor had offered incentives that include the equivalent of property-tax breaks of up to 92.5% for the first 10 years, with the write-offs gradually declining over the next several decades.

“A final decision has not yet been made regarding the location,” a Samsung spokeswoman said.

Samsung’s doubling down on Texas where it already has a footprint comes amid a year of historic spending for the semiconductor industry, spurred by government incentives seeking to attract local production. A global chip shortage has undercut many industries from smartphones and home appliances to cars.

An expanded version of this report appears on WSJ.com.

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This article was originally published by Marketwatch.com. Read the original article here.

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