Samsung petitions, Austin, Texas, for more subsidies

March 28, 2021 // By Peter Clarke
Samsung petitions, Austin, Texas, for more subsidies
Samsung's plan for a wafer fab in Austin, Texas, reportedly hinges on additional tax breaks, according to a Business Korea report.

Samsung Electronics has reportedly submitted a revised proposal to Texas requesting additional tax cuts for a planned wafer fab. At the same time, it has been revealed that Samsung is considering alternative locations for the $17 billion wafer fab, two in Arizona and one in New York.

In its original proposal filed on January 18, Samsung requested US$900 million in tax relief over 20 years. In a second proposal Samsung has proposed that the state and municipal governments of Texas cut property taxes, lower utility taxes, and offer other non-cash benefits. Analysts have said the proposals should be seen as an ultimatum, Business Korea said.

Since Samsung put in its original proposal it has suffered a prolonged shutdown at its S2 wafer fab in Austin, due to snowstorm. The second proposal includes a request for utility rate reductions apparently stimulated by the event.

In the first proposal Samsung noted that the states of Arizona, New York and locations in South Korea were offering incentives.

Related links and articles:

www.samsung.com

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