Samsung Says Metro Phoenix On Shortlist For Huge Semiconductor Plant
Metro Phoenix’s technology sector could get a big boost if Samsung Electronics decides to build a $ 17 billion semiconductor plant here.
The South Korean maker of cell phones, computers, televisions, home appliances and more is considering locations in the valley, as well as in Texas, New York state and Korea for the chip factory and its planned 1,800 high-paying jobs. The company hasn’t made a decision, although some press reports suggest that the Austin area, where Samsung already operates, may be ahead of the game.
According to media reports, the Phoenix subway locations being considered are in Goodyear and Queen Creek.
Samsung is demanding more than $ 1 billion in tax breaks from Austin, Travis County, Texas, and a local school district. This is evident from filings the company filed with the Texas Comptroller’s office and reported by the Austin American-Statesman.
Without the tax break, the company would likely locate the factory in Arizona, New York state, or South Korea.
The Texan documents indicate that Samsung could break the ground for the plant as early as the second quarter of this year and start production before the end of 2023.
Growing chip presence in the valley
The Phoenix metropolitan area already had a solid foundation for the chip industry with Intel, NXP Semiconductors and others, including two large local-based companies in ON Semiconductor and Microchip technology.
In addition, Taiwan Manufacturing Semiconductor, the world’s largest maker of custom chips, has bought land to build a $ 12 billion chip factory in northwest Phoenix.
The proposed Samsung factory would represent a larger investment than the facility Taiwan Semiconductor Manufacturing plans to build on 1,129 acres. The $ 89 million package is located in northwest Phoenix near Loop 303 and 43rd Avenue. The Taiwanese company has also rented office space in Phoenix to serve as the administrative center for this project.
Locations in Goodyear, Queen Creek
According to media reports in the Wall Street Journal, American-Statesman and elsewhere, Samsung is looking for locations for its proposed 1,000 acres or more factory in Goodyear and Queen Creek.
Officials from the Greater Phoenix Economic Council, Arizona Commerce Authority, Goodyear and Queen Creek declined to comment, and Samsung’s U.S. division did not respond to a request.
According to investment researcher Morningstar, Samsung generates more than half of its annual profits with semiconductors. Samsung’s total profit is expected to grow nearly 30% this year.
Arizona Republic reporter Taylor Seely contributed to this article.
Reach Wiles at [email protected]