samsung electronics company plan Build a chip-making plant worth about $17 billion In Taylor, Texas, according to people familiar with the matter, a mega investment by the South Korean tech giant, as Biden Administration pushes for expansion of US semiconductor production.

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People with knowledge of the matter said that an announcement could be made as early as Tuesday. Governor Greg Abbott is scheduled to make an “economic announcement” at 5 p.m. local time on Tuesday.

The Taylor facility, located in central Texas, plans to create about 1,800 jobs, although chip production is not expected to begin until late 2024, according to documents. samsung previously filed with Texas officials. To woo Samsung, Taylor offered incentives that included the equivalent of a property-tax break of up to 92.5% for the first 10 years, with the write-off gradually decreasing over the next several decades.


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“A final decision regarding the location has not yet been made,” a Samsung spokesperson said.

Samsung’s doubling in Texas, where it already has a footprint, comes amid a year of historic spending for the semiconductor industry, driven by government incentives to attract local production. A global chip shortage has decimated many industries, from smartphones and home appliances to cars.

World’s largest semiconductor maker by revenue Samsung plans To invest more than $205 billion In the next three years, with chip making priority, Taiwan Semiconductor Manufacturing Co. Over $100 billion has been earmarked To build new chip factories in the next three years. Intel the corporation also Unveiled worth over $100 billion Semiconductor factory investments are planned in the US and Europe in the coming decade.

Boosting US production of chips has been a priority For both the Biden administration and Congress, which has established motion legislation to provide funding to encourage investment in America In June, the Senate approved $52 billion in direct industry subsidies for factories making new semiconductors, although the House has yet to act.

America has lagged behind According to the Semiconductor Industry Association, semiconductor manufacturing accounts for only 12% of world-wide production capacity in 2020, down from 37% in 1990. China, Taiwan and South Korea have become major production centers of computer chips, seen by lawmakers as a critical resource for national security and economic development.

Before landing on Taylor, Samsung had previously searched for locations in Arizona, New York and Florida, according to people familiar with the process. People said the company had also considered Austin, Texas, where Samsung has operated its only US-based chip-making plant for decades.

Taylor, a town of about 16,000 people in Williamson County, is about 30 miles from Austin. The planned site of approximately 1,200 acres is much larger than Samsung’s property in Austin.

The Taylor factory is expected to serve as an advanced chip-making facility for Samsung’s contract-manufacturing operations that make semiconductors designed by other firms. Such high-end manufacturing is attracting the bulk of the semiconductor industry investment. The types of chips with the longest backlogs tend to be low-priced and have not been largely focused on expansion.

The Samsung logo is photographed on October 24, 2021 in Cologne, Germany.

Samsung’s investment also represents another victory for Texas’ ambitions as a tech hub. In October, Tesla Inc. Said it’s moving its headquarters For Austin, months after the chief executive arrived ELON musk Moved to the Lone Star State. Intel has said it will hire about 1,700 people for the downtown Austin design complex.

Samsung’s decision on the location of its new US chip plant comes months after parole Lee Jae-yong, the de facto leader of the South Korean group, in August. Mr. Lee was behind bars after being found guilty of bribing the former South Korean president for a 2015 merger between two Samsung allies in exchange for government support, which helped consolidate his ownership of the group. He was released about a year ago.

Return Mr. Lee, the 53-year-old grandson of the Samsung founder, came with hopes of bold moves after his supporters argued that South Korea’s largest business conglomerate had become inconclusive in his absence. The Ministry of Justice pointed to “economic factors” when granting Mr. Lee parole. Major decisions from Samsung require Mr. Lee’s signature.

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In recent days, Mr. Lee has been on a business trip to the US, sharing photos of trips with the Samsung CEO. Modern Inc. And Verizon Communications Inc. Mr. Lee met White House officials and lawmakers as well as . also met Microsoft Corporation, The company’s chief executive Satya Nadella said. Mr. Lee is unlikely to be in Texas for Tuesday’s event, according to a person familiar with the situation.

President Biden listens during an announcement in the South Court Auditorium of the Eisenhower Executive Office Building on November 22, 2021 in Washington, DC

South Korean foreign direct investment in the US reached $62.4 billion in 2020, up 14% from the previous year, according to data from the US Department of Commerce. In May, South Korean President Moon Jae-in met with President Biden at the White House, where the two countries promised deeper cooperation on supply-chain issues. At the time, South Korean firms also outlined US investment plans.

This article first appeared in the Wall Street Journal