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NXP Semiconductors to expand chip factory in the United States with 17.5 billion yuan

Published :5/19/2022 8:22:37 AM

Click Count:2103

According to foreign media reports, chip maker NXP Semiconductors recently held a meeting with board members of the Austin Independent School District (AISD) in Texas, USA, and plans to expand its chip factory by spending $2.6 billion (about 17.643 billion yuan) to in exchange for tax cuts.

According to the report, an AISD spokesman said they would vote within two weeks on whether NXP could continue to apply for the tax cut.

Under Chapter 313 of state law, Texas public schools can provide tax benefits to companies investing in their communities. In exchange, businesses pay school districts money to subsidize their share of property tax revenue.

Previously, NXP representatives told a May 10 meeting that the company was considering a $2.6 billion expansion plan that would create about 800 new high-paying jobs. The agreement may also provide AISD students with potential benefits such as internships and STEM (science, technology, engineering and math) learning opportunities.

NXP spokesman Jacey Zuniga said that the company is also considering other cities other than Austin as locations for expansion, and plans to finally decide on the location in Q4 this year and start construction in 2024.

The company also said the district’s approval of the tax cuts would not adversely affect the company, and that failure to recover funds would not affect payments to school districts in need.

It's important to note that the proposal was only discussed at the May 10 meeting, and the board is expected to meet again to decide whether to move forward with the tax cuts.

Austin, Texas has gradually become one of the development centers of the semiconductor industry in the United States. In addition to NXP, several semiconductor manufacturers have plans to invest in Austin, Texas. For example, chip maker Infineon said in February that it was considering a $700 million expansion in Austin; Samsung Electronics announced last year About 48 kilometers away from the city, it has invested 17 billion US dollars to build a factory; Micron also plans to build a factory there.