“Close partnerships with companies like Samsung — who recognize the boundless possibilities Texas has to offer — are bringing greater opportunities to Texans, and this potential investment will bring billions of additional capital to continue growing our world-class business climate and diverse, highly-skilled workforce,” Abbott stated.
“These new facilities solidify the Lone Star State as the nation’s leader in the semiconductor industry, and I thank Samsung for increasing their investment in the hardworking people of Central Texas.”
According to Abbott’s press release, the passage of a congressional bill is “a major factor for this potential investment by Samsung.”
Congress is currently considering the Creating Helpful Incentives to Produce Semiconductors for America (CHIPS) Act of 2022, a piece of subsidy legislation that has divided D.C. Republicans.
Abbott urged Congress to pass the bill in a second press release yesterday.
“I call on Congress to pass this legislation without further delay, so that Texas and the United States can continue to lead in the semiconductor arena while decreasing our dependence on foreign production and ensuring our national security,” he stated.
The first CHIPS Act was passed in 2020, carried by Texas lawmakers Rep. Michael McCaul (R-TX-10) in the House and Sen. John Cornyn (R-TX) in the Senate. It was incorporated into the 2021 National Defense Authorization Act (NDAA).
Cornyn spoke for the 2022 bill in the Senate on July 18, calling subsidies for semiconductors necessary for national security.
“The fact is that the United States makes 0 percent of the advanced semiconductors that are necessary, from your iPhone to fifth-generation joint strike fighters like the F-35,” Cornyn said.
“If you are a company like Intel, this is what’s going to happen. Intel Corporation made $20 billion last year… We are going to give them some money to build a plant. Then we’re going to give them a tax deduction for building the plant, and then we are going to give them a tax credit for building the plant,” Scott said.
“And guess what? They can keep doing business in China… Sounds like a pro-China bill, not an anti-China bill, to me.”
With the help of hundreds of millions of dollars in both state and local tax incentives, Samsung announced last year that it would build a semiconductor plant in Williamson County, set to be finished in 2026.
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