The tech giant is seeking combined tax abatements of $805.5
million over 20 years from Travis County and the city of Austin, among other
tax breaks, according to the documents.
Samsung said in its filings that if Austin is selected, the
company would break ground on the site in the second quarter of this year and
that the plant will become operational in the third quarter of 2023.
"This project is highly competitive, and the company is
looking at alternative sites in the US including Arizona and New York, as well
as abroad in Korea...," Samsung said in the documents, adding that it is
taking into account access to talent, chip ecosystem and speed to market in its
evaluation of the sites.
Samsung's American customers for its contract manufacturing
chip business include Tesla, Qualcomm and Nvidia.
Samsung's filing said it plans to make "advanced logic
devices," meaning it would aim to make the smallest, fastest kinds of
computing chips for customers. The company has an existing chip plant in Austin
that makes computing chips.
In a statement to Reuters, Samsung confirmed it is
considering expanding its chip facilities, but no decision has been made yet.
The documents say the project would involve building out 7
million square feet (650,000 square meters) of new space on a 640-acre
(259-hectare) site that the company already owns.
US Senate Majority Leader Charles E. Schumer, called on
Samsung to put a factory in his home state of New York, pledging to work to
secure federal incentives for the facility, which he said are key for US to
compete with China in boosting local chip production.
While Intel Corp makes such chips for itself in the United
States, most contract manufacturers who make them for outside clients, such as
Taiwan Semiconductor Manufacturing (TSMC) Co Ltd and Samsung, maintain most of
their facilities in Taiwan and Korea, respectively.
TSMC, which counts Apple among its major customers, last
year disclosed plans for a $12 billion chip plant in Arizona expected to come
online in 2024.
The filings with Texas officials were earlier reported by
the Austin American-Statesman newspaper.
© Reuters