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Samsung chooses Taylor for its new chip plant, citing the importance of a reliable supply of power

Samsung will be coming to Taylor, Texas, a new report says. (Shutterstock)

Samsung Electronics has settled on the City of Taylor, 35 miles northeast of Austin, for construction of a $17 billion new chip plant, the Korea JoongAng Daily reported Monday. Measuring 51.7 million square feet, the new facility would be four times larger than Samsung's existing plant on East Parmer Lane in Austin.

Williamson County Judge Bill Gravell confirmed a meeting this week of Samsung representatives and local officials, saying the chip plant would be a "significant economic development project with thousands of jobs" brought to Williamson County.

He added, "Good paying jobs for all skill levels to drive economic growth in our region are needed now more than ever, and we are committed to doing everything we can to land this project and bring it home to Williamson County. Stay tuned."

No official announcement has been made by Samsung. A spokesperson issued the following statement to Austonia: "All sites are under consideration and each community is performing the appropriate due diligence to put themselves in the best position for this opportunity. The actions by Williamson County and City of Taylor are part of their due diligence."

A special joint meeting of the Williamson County Commissioners Court and the Taylor City Council is scheduled for 5 p.m., Wednesday, Sept. 8, at the Taylor ISD Event Center, 3101 N. Main Street in Taylor. The meeting is open to the public.

Joongang Daily, quoting a source at the South Korea-based tech giant, reported that Samsung "has thoroughly reviewed four to five locations for the Star Project."

"What I learn is that (Samsung) finally chose Taylor after taking into account investment incentives and geographic conditions," the source said. The deal is said to include tax abatement and development agreements with the City of Taylor.

Samsung had considered several other U.S. locations. They included upstate New York; Phoenix, Ariz., and in the Manor, Tex., ISD, near its existing Austin plant. The newspaper said the Manor site was abandoned following the temporary shutdown of the Austin factory because of a power outage during the Texas freeze in February. The outage reportedly cost Samsung $350 million.

That turned Samsung off on the Manor site, according to an "industry insider" quoted by Joongang Daily.

"If you set up the new facility in a location away from the Austin plant, it could cost Samsung more for the supply of water and electricity and the establishment of other infrastructure," the source in the semiconductor industry said. "But the advantage is that it can operate the line in a more stable manner."

Samsung is engaging in a vast expansion of its semiconductor business to meet the demand for chips in telecommunications, biopharmaceuticals, robotics, artificial intelligence and quantum computing.


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