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Taylor officially becoming site for new $17 billion Samsung chip-making factory

After months on the shortlist, an announcement that Taylor is the site for a new Samsung chip-making facility is expected. (Shutterstock)

A new $17 billion Samsung chip-making facility will be built in Taylor, Texas, Gov. Greg Abbott confirmed during an economic announcement from the governor's mansion Tuesday afternoon, saying it is the largest foreign direct investment in the state of Texas ever.

"The implications of this facility extend far beyond the boundaries of Texas," Abbott said. "It's going to impact the entire world."

Abbott mentioned that Samsung had other options, alluding to the company's consideration of sites in New York and Arizona. "I want you to know that Texas is grateful that you chose Texas for this project," Abbott said, turning to CEO Ki Nam Kim.

Kim said the decision was based on a set of key factors including incentive programs, infrastructure readiness and stability, and talent pool. The plant will bring 2,000 high-tech jobs, thousands of indirect jobs and at least 6,500 construction jobs to Taylor.

"We would like to share our sincere gratitude with everyone who has been part of this journey with us from the beginning, especially to representatives from the great state of Texas, Williamson County and the City of Taylor," Kim said.

Sen. John Cornyn also attended the announcement, noting a visit he made this past summer to Austin's Samsung semiconductor facility to discuss the impact of the nation's chip shortage.

"From automotive to consumer electronic manufacturing, virtually every industry has been negatively affected by the chip shortage," Cornyn said. "What keeps me up at night is how the chip shortage is a threat to our national security."

As Austonia reported in September, the South Korean tech giant selected Taylor for its plant in a deal that is said to include tax abatement and development agreements with the city. Abbott said they were provided incentives at the federal, state, county and city level. A Texas Enterprise Fund grant of $27 million has been extended to Samsung for their job creation. They were also offered a $20,000 veteran-created job bonus.

Recent months have hinted at Taylor, 30 miles northeast of Austin, being a strong contender for the roughly 1,200-acre plant. In July, Samsung filed an application with the Texas comptroller's office for an incentives deal with Taylor ISD.

Then, in September, leaders with Williamson County and the City of Taylor held meetings to discuss the plant.

Williamson County Judge Bill Gravell confirmed local officials had met with Samsung representatives in September, describing the possible Taylor plant as a significant economic development project. "Good paying jobs for all skill levels to drive economic growth in our region are needed now more than ever," Gravell said as he pledged officials were doing everything they could to land the project.

The city of Austin has already responded to the announcement. From City Manager Spencer Cronk:

"We are proud to say that Austin is still home to Samsung and that the products made here remain in high demand. Our 25-year history with Samsung is a valued relationship and one that is not ending. The announcement of Samsung's investment is about an additional expansion and not about relocating their Austin facility. This expansion in our region will add more jobs for Austinites, create new contract opportunities for local businesses, and spur additional business growth in Austin. We look forward to a continued relationship with Samsung, including the opportunity for future expansions of the Austin facility."

This story was updated at 5:15 p.m. with the announcement and against 6:30 p.m. with more quotes about the announcement.


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