Ultimate magazine theme for WordPress.

How a little Texas town snagged a $17 bln Samsung chip plant deal

AUSTIN, Texas, Nov 24 (Reuters) – Williamson County Judge Bill Gravell is the primary to confess few individuals had heard of his small town of Taylor in Central Texas earlier than South Korean conglomerate Samsung introduced it was constructing its new $17 billion chip manufacturing unit there.

The Electronics Co Ltd (005930.KS) plant, which is predicted to supply superior high-performance chips, is hailed by native, state and U.S. officers as an necessary step in shoring up home chip provide and decreasing dependence on Chinese manufacturing. learn extra

“Today, Taylor, Texas might be better known around the world than any other city in central Texas,” Gravell, the county’s prime elected official, mentioned throughout a Wednesday interview.

Register now for FREE limitless entry to reuters.com

Gravell attributed the success of Tuesday’s announcement to direct collaboration with Texas Governor Greg Abbott’s workplace, who he mentioned bought personally concerned to safe the plant’s electrical energy provide with Sempra Energy’s (SRE.N) Oncor Electric Delivery Co.

Gravell mentioned Oncor’s Chief Executive Allen Nye met with Samsung President Jung-bae Lee in Austin earlier this yr to guarantee the corporate that industrial customers on Oncor’s community didn’t undergo outages throughout final winter’s large Texas snow storm.

Samsung has additionally struck an settlement with Canadian EPCOR Utilities Inc [RIC:RIC:EPCOR.UL] to construct a water pipeline to the plant from Alcoa, 25 miles (40 km) east of Taylor, Gravell mentioned.

“This plant will not affect any existing water sources, it’s a brand new water source brought in by Samsung,” he mentioned.

The county choose mentioned state officers from the financial improvement division additionally helped him navigate worldwide enterprise talks, recommending to him a guide on Asian tradition.

“I wasn’t necessarily sure how to negotiate with Koreans, I’ve never had that experience before,” Gravell mentioned. “I studied up and learned the chapters by heart.” learn extra

Samsung has not specified what the brand new plant will make past superior logic chips which can be utilized to energy cellular gadgets and autonomous autos.

Gravell mentioned firm executives instructed him they didn’t know the technical specifics of the chips to be manufactured on the new manufacturing unit but as a result of at the moment’s expertise is likely to be outdated in a few years.

Samsung mentioned the plant, which is projected to create 2,000 high-tech jobs, would begin manufacturing within the second half of 2024.

Register now for FREE limitless entry to reuters.com
Reporting by Tina Bellon in Austin, Texas; Editing by Karishma Singh

The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. REUTERS/Yves Herman

Comments are closed.