In a Wednesday night joint meeting with the City of Taylor, the Williamson County Commissioners Court approved a resolution, a Chapter 381 performance-based agreement, and a development agreement as an incentive package for Samsung Austin Semiconductor, LLC, to build its newest semiconductor plant in Taylor. Since January, Williamson County has been in consideration as the possible location of Samsung’s future expansion in the United States.
“If Williamson County is selected, this will be the largest economic development project ever in the State of Texas and the largest economic development project with foreign investment in the United States,” said County Judge Bill Gravell. “I want to thank Senator [John] Cornyn and Governor [Greg] Abbott for their assistance in helping us with our proposal to bring Samsung home to Taylor.”
The resolution states that it is a matter of national security that the manufacturing of semiconductors be located in the United States in order to reduce dependency on foreign supply chains. The resolution also states the need to address the global shortage of semiconductors. However, for County Judge Bill Gravell, the reason to approve the agreement hits closer to home.
“I voted in favor of this agreement because of the opportunities this will bring to the students in Taylor schools,” said Judge Gravell. “In addition to the more than $245 million estimated tax revenue the school district will collect, our agreement calls for Samsung to hire 24 interns. This will give them opportunities with an international company that would not have otherwise been possible in Taylor.”
A Chapter 381 agreement is a performance-based agreement to provide incentives to stimulate, encourage and develop business and commercial activity in a county based upon the developer meeting specific objectives. In Williamson County’s agreement, Samsung must construct a minimum of six million square feet of facilities by January 31, 2026, with incremental deadlines. The company also must create 1,800 full-time jobs.
If these conditions are met, the County will then grant Samsung an amount equal to 90% of ad valorem taxes paid by the company for the first ten years of the agreement. For the second 10 years of the term, the County will grant an amount equal to 85% of ad valorem taxes paid by the company.
“This agreement is a win for Williamson County because it is performance based. Williamson County first collects all taxes on the assessed value of the company and does not grant back any funds until performance measures have been met,” said Precinct 4 Commissioner Russ Boles. “This allows us to be competitive in recruiting large companies, such as Samsung, while holding them accountable to their promises for the jobs and improvements they will bring.”
Samsung has made no final decision on where its new facility will be located and there are a handful of other cities still under consideration.
