The Samsung Effect: Transforming Central Texas’ Tech Landscape
In recent years, Central Texas has become a hotspot for high-tech investments. Samsung has had an incredible impact with their new Semiconductor Plant. The South Korean-owned chipmaking giant has plans to invest $200 billion over the coming years to develop up to 6M SF in a next-generation chipmaking facility in Taylor, about 40 miles northeast of downtown Austin. This ambitious fabrication site stands as one of the largest foreign investments on U.S. soil, partly driven by federal legislation aimed at reducing the nation’s dependence on non-American sources of advanced technology.
Since the 2021 announcement of Samsung’s new semiconductor plant in Taylor, officials have been tracking what has been coined the “Samsung Effect”. Companies expected to follow the chipmaker to Central Texas as it builds the massive facility in Taylor. With the presence of such a massive facility, it’s not surprising that other companies are eyeing Central Texas as an attractive destination for expansion.
Economic Development leaders from the Austin area traveled to South Korea this past April to meet with Samsung suppliers, hoping to entice them to follow the electronics giant and establish operations in Williamson County and Central Texas. They estimate that 150-200 suppliers could eventually set up shop in the region.
Though, we’ve already begun to see announcements from suppliers who have announced expansions into Central Texas. Such as electrical power equipment manufacturer LS Electric, who recently purchased 409 Technology Drive, a 40,000 SF facility in Bastrop. Then industrial materials distributor, iMarket Korea purchased 44 AC east of Taylor and plans to develop a technology-oriented business campus. Additional company expansion announcements were made from gas supplier, Linde Inc., stainless steel piping supplier, Valex Corp., and semiconductor equipment parts cleaning company, KoMiCo Technology Inc.
Samsung’s recent annual economic impact report shows the potential of the Taylor facility. Samsung estimated that is Austin facility (originally built more than 20 years ago on the city’s north side) pumped $9.3 billion into the Central Texas economy in 2022, along with 14,312 permanent jobs and $912.5 million in worker salaries.
The “Samsung Effect” is creating a ripple of positive economic and technological changes in Central Texas. With its massive investment and ambitious plans, Samsung’s Semiconductor Plant is positioning the region as a leading tech hub in the United States. As more companies and suppliers gravitate towards this landscape, the future looks incredibly promising for Central Texas.