Samsung top pick for retail investors after US election
Retail investors scooped up 2.33 trillion won ($1.67 billion) worth of Samsung Electronics stocks since the U.S. presidential election, the country's main bourse said on Sunday.
South Korean tech giant Samsung Electronics has shared a development idea that the company has been considering executing for some time.
Samsung is planning to invest nearly $200 billion to build 11 more chip plants in the US, over the next two decades, documents filed with the state of Texas showed on Friday.
Samsung is seeking tax concessions for the potential construction of 11 new chip fabrication facilities in the state — nine in Taylor and two in Austin in Texas.
The proposed investment is described in the South Korean tech giant’s applications filed with the Taylor and Manor school districts,
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Samsung is the world’s largest chip(semiconductor) maker in the world, and the company already has a giant chip plant in Austin, while it is building a $17 billion plant in nearby Taylor.
But, reports from Yonhap news agency stated that it is still not confirmed whether the company is committed to making the proposal.
“We currently do not have specific plans to build at this time. However, the Chapter 313 applications to the State of Texas are part of a long-term planning process of Samsung to evaluate the viability of potentially building additional fabrication plants in the United States,” Samsung said in a statement.
Chapter 313 “allows public school districts to offer tax incentives for businesses that invest in their communities,” according to the Texas Comptroller’s office. And it is set to expire at the end of the year, which means businesses must apply again to continue to benefit from the tax program.
Texas Governor Greg Abbott welcomed the proposal, “This potential investment will bring billions of additional capital to continue growing our world-class business climate and diverse, highly skilled workforce,” he said in a statement.
Greg Abbott suggested that Us Congress should give tax concessions to Samsung so that they can establish semiconductors plants in America to help the U.S. cement “a secure semiconductor supply chain, which is vital to our nation’s economy and national security.”
In March, the US government invited Samsung to Washington, to give the world’s largest chip maker a chance to solve a continuing chip shortage, by expanding its semiconductor manufacturing in the states.
Washington should “ensure that all qualifying companies should be able to compete for CHIPS Act incentives to pursue semiconductor projects in the U.S. on an even playing field, irrespective of their country of incorporation,” Samsung said in a document submitted to the U.S. Commerce Department.
That way, the act could fulfill its objectives of “increasing US semiconductor capacity,” Samsung said, by encouraging “new private capital investment in the semiconductor ecosystem.
Samsung has been running manufacturing operations in the US for more than four decades and is employing over 20,000 Americans, and if the tech giant gets permission for semiconductors production, it will create about 10,000 new jobs in Austin and Taylor.
The CHIPS Act is aimed at boosting US semiconductors manufacturing capacity and capability, and shoring up supply chains.
(With inputs from IANS)
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