Incentives Estimated to Add up to US$4bn

Samsung Electronics is expected to receive incentives worth US$4 billion from the U.S. federal and state governments for investing US$17 billion to build its second U.S. foundry in Taylor, Texas.

Samsung Electronics has decided to build its second U.S. foundry in Taylor, Texas. Related incentives from the federal and state governments are estimated to add up to US$4 billion.

For example, the city government decided on Nov. 9 to apply a factory site-related property tax cut of 92.5 percent, 90 percent and 85 percent for the first to third decades, respectively. In addition, an education tax of US$314 million will be exempted by the Taylor Independent School District.

Job creation subsidies from the state government total US$27 million and it will provide tax incentives with regard to building material purchase and so on. On the federal government level, the House is deliberating on the U.S. Innovation and Competition Act to provide US$250 billion in the semiconductor industry and up to US$3 billion may be provided for Samsung Electronics from 2022 to 2026. In the Senate, a bill for a tax credit of up to 25 percent was tabled in June this year regarding semiconductor facility and equipment investment.

According to industry sources, those incentives were discussed while Samsung Electronics vice chairman Lee Jae-yong stayed in the United States from Nov. 14 to 24. During the business trip, he met with National Economic Council Director Brian Deese, National Security Advisor Jake Sullivan, etc.

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