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How a little Texas town snagged a $17 billion Samsung chip plant deal -Breaking


© Reuters. FILEPHOTO: A building with the logo Samsung can be seen during the Mobile World Congress held in Barcelona (Spain) February 25, 2018. REUTERS/Yves Herman

Tina Bellon

AUSTIN (Reuters) – Williamson County Judge Bill Gravell admits that few had ever heard of Taylor, Texas in Central Texas prior to South Korean conglomerate Samsung’s (KS:), announcement of its $17 billion chip plant there.

Electronics Co Ltd is an American plant that will produce high-performance, advanced chips. It is being hailed as both a positive step to increase domestic supply of chip production and reduce dependence on Chinese.

Gravell said Wednesday that Taylor, Texas may be more well-known than any other central Texas city.

Gravell said Tuesday’s success was due to Texas Governor Greg Abbott’s direct collaboration. He stated that he personally got involved in securing the plant’s electricity supply. Sempra Energy (NYSE:) Oncor Electric Delivery Co.

Gravell reported that Oncor’s Chief Executive Allen Nye met in Austin with Samsung President Jungbae Lee earlier this year, to assure them that Oncor’s industrial users were safe from outages following last winter’s huge Texas snowstorm.

Samsung also reached an agreement to construct a water pipe to the plant through Canada with EPCOR Utilities Inc. Alcoa Gravell stated that Taylor is 25 miles (40km) away from (NYSE:).

He said, “This plant won’t affect any existing sources of water. It is a new water source that Samsung has brought in.”

According to the county judge, officials in the state’s economic development department helped him with international business negotiations and recommended a book about Asian culture.

Gravell stated that although he wasn’t certain how to deal with Koreans, he had never experienced it. I studied the chapter and knew them by heart.

Samsung does not know what this new plant is capable of other than advanced logic chips, which are used in mobile phones and autonomous cars.

Gravell stated that company executives informed Gravell they didn’t know all the details of the new chips because the technology may be obsolete in the future.

Samsung claimed that production would commence in the second quarter of 2024. The plant is estimated to generate 2,000 high-tech jobs.

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