Samsung lays the potential groundwork for several new Texas-based semiconductor factories

Jimmy2x

Posts: 146   +12
Staff
Forward-looking: Samsung recently filed 11 tax break applications to build semiconductor facilities in the suburbs of Austin, Texas. The applications for state-backed incentive programs were posted to the Texas state comptroller's website earlier this week. If pursued, the semiconductor giant's investment could total up to $200 billion across the Austin and Taylor areas.

The applications are part of Texas' Chapter 313 incentive program, which provides companies with a 10-year limitation on the taxable property values in exchange for the applicant installing facilities and creating jobs within the defined area. The proposals come on the heels of Samsung's plans to build a $17 billion semiconductor manufacturing facility just northeast of the Austin area.

The move, if pursued, would expand Samsung's Texas-based manufacturing operations with two facilities in Austin and nine more in nearby Taylor. But there's no guarantee that the facilities will become a reality. According to Samsung's Michele Glaze, the company has no specific plans to build the facilities at this time. Instead, the Chapter 313 applications are part of a "...long-term planning process of Samsung to evaluate the viability of potentially building additional fabrication plants in the United States." Currently, none of the Chapter 313 applications have received final approval.

The pending applications, which could total almost $5 billion in tax breaks for Samsung, are a major factor in the company's future decision to build additional facilities in the area. The applications themselves by no means guarantee Samsung will follow through with the investment in the area. Failure to secure the incentive could instead force the company to change their current long-range plans and reconsider a more tax-friendly location.

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yRaz

Posts: 4,960   +6,410
While I hate when the government gives money to companies, not taxing a company to building something they wouldn't have otherwise here is not the same thing. And, seriously, that money is going to get taxed several times as it works its way down the food chain.

Is it good? No, but it's not as bad as giving $52 billion away to help subsidize companies that already have billions to do business here.

I'm honestly curious how much of that $5billion in waived taxes will make its back back down the economic sewer that is the American tax code?
 

mailpup

Posts: 7,789   +858
TS Special Forces
While I hate when the government gives money to companies, not taxing a company to building something they wouldn't have otherwise here is not the same thing. And, seriously, that money is going to get taxed several times as it works its way down the food chain.

Is it good? No, but it's not as bad as giving $52 billion away to help subsidize companies that already have billions to do business here.

I'm honestly curious how much of that $5billion in waived taxes will make its back back down the economic sewer that is the American tax code?
If it makes you feel any better, keep in mind that they are still subject to federal taxes. That should include income taxes, Social Security taxes and SDI. Texas as a state cannot waive those.
 

Uncle Al

Posts: 9,363   +8,581
Considering where and how badly that area has flooded the past few years I hope they are very selective where they build .... or put the darn place on stilts!
 

PEnnn

Posts: 1,008   +1,358
Texas is hardly able to provide enough power to its citizens in a heat-wave or a cold winter.

Those companies are in for a big surprise by having presence in that third-world state run by republicans who hate anything resembling decent infrastructure!!