Samsung will have to spend a lot more to set up a facility in the United States. The cost of construction will increase almost one and a half times in comparison with the original plan.
What is known
Samsung has announced that it wants to build a new plant in Texas to serve customers in the semiconductor sector. The estimate of the manufacturer from South Korea assumed the allocation of $ 17 billion for the construction of a second enterprise. According to new data, the company will have to spend $25 billion.
The increase in the budget by $8 billion was caused by an increase in construction costs. The US government is ready to allocate $39 billion in subsidies over the next five years, but the US Department of Commerce believes that subsidies will cover no more than 15% of the cost of building factories.
Samsung wants to complete the new venture by 2024 and start production in 2025. The plans are justified by the company’s desire to claim tax deductions when purchasing equipment.
Source: Reuters
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