Samsung announces $17 billion chip plant in Texas

Written by Staff Writer

(CNN) — The tech behemoth has announced it will set up an $17 billion semiconductor factory in Austin, Texas, where it will create 2,000 jobs.

Samsung said the new site will consolidate its chip manufacturing operations in a single location. It will be the largest semiconductor fabrication facility in the Americas and will be ready by the end of 2021.

The plant will support products for smartphones, electronic devices, connected cars and consumer electronics.

After the announcement, Texas Gov. Greg Abbott called the investment a “landmark deal.”

“Samsung’s investment in Texas is a sign of our growing global stature,” Abbott said in a statement. “When one of the world’s largest technology companies chooses Texas as a home for this world-class investment, it shows Texas is open for business and we are excited to welcome them as a part of our great state.”

Samsung’s Investment on Texas — Greg Abbott (@GregAbbott_TX) June 9, 2016

The company will get property, sales and personal property tax exemptions and the Texas Enterprise Fund has waived job-creation and expansion tax incentives, the governor’s office said.

“Texas has made remarkable strides in welcoming businesses and bringing jobs to our state,” Abbott said. “We have cut taxes on Texas families and businesses by billions, enabled visa-free access to foreign investors and streamlined regulations to help bolster Texas’ competitiveness in technology.”

Samsung’s move comes as President Donald Trump makes courting U.S. companies into a national priority as part of his infrastructure plan.

During the election, Trump was a vocal critic of the “corporate welfare” paid by states to attract foreign businesses to “Make America Great Again.”

It’s unclear what effect Trump’s plan could have on foreign companies that are already in the U.S.

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