The Austin suburb of Taylor is getting another infusion of cash into its $17 billion Samsung project, this time in the form of a state grant.
The company received a $250 million Texas Semiconductor Innovation Fund grant for the facility it’s building in Taylor; the funding will support the ongoing development of the multibillion dollar chipmaking plant and nearby residential projects. Buildout of the campus will support about 12,000 construction jobs and bring more than 3,500 manufacturing jobs once the plant is up and running within the next five years, Connect CRE reported.
In 2021, the South Korean company announced that its second U.S. factory would be in Taylor — a town of about 18,000 some 34 miles north of Austin in Williamson County. Since then, the prospect of the 6-million-square-foot factory has spurred residential and commercial development in the area, known as the “Samsung effect.”
At the time, about $981 million in incentives from local and state authorities were used to lure the factory, including a 30-year property-tax abatement from the city. Samsung will still pay Taylor a projected $52 million in taxes, which will go into the city general fund. The company will also invest in about $6 million in buildings and $11 million in machinery in the town.
According to a news release from Governor Greg Abbott’s office, the state grant will help support “a more secure domestic supply of chips for critical U.S. industries.”
“With approximately $40 billion invested in Texas, Samsung is helping to cement Texas’ position as the leading state for semiconductor manufacturing, bringing in more business investment to Texas communities and creating thousands of good-paying jobs for hardworking Texans,” Abbott said.
Abbott signed the Texas CHIPS Act into law in 2023. The legislation established the grant program, aimed at growing the state’s efforts in semiconductor design, research and manufacturing.
Work on the facility should be complete in 2026.
— Eric Weilbacher
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