Samsung is one of the largest phone companies in the world, its major competitor being Apple. Based in Korea, they are also a mass producer of chips, an industry that has had a rough ride in the past year due to supply chain struggles. They are prioritizing this part of the business, making heavy investments to compete with players like TSMC, Intel, and AMD, including a unique one in the United States.
Samsung announced on Monday that they are going to build a 17-billion-dollar chip making plant in Taylor, Texas, a small town located in the outskirts of Austin. It’ll produce up to 2,000 jobs starting in 2024, and even though the location isn’t confirmed, most people related to the situation say that it will be Taylor. Taylor offered Samsung property tax breaks of 92.5 percent for the next 10 years, with the number gradually decreasing in the coming decades, which sealed the deal for Samsung. The move will help bolster US chip production to compete with leaders like Korea, Taiwan, and China, and they have support from the US government as there are plans to provide funding to the industry. It also marks a major economic gain for Texas, who has taken one step forward towards becoming a tech hub in the United States. Earlier this year, Tesla moved their factory to Austin, Texas, and tax laws in Texas make it an easy decision for companies to move there. Governor Abbott plans to make the announcement today, and it will help the local and national economy, although there is risk for increased pollution. Do you think this was a smart decision by Samsung?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.