Micron Technology, one of the world's largest manufacturers of semiconductor storage and imaging products, has filed an application with the state comptroller's office for a property tax abatement to build a new $160 billion semiconductor plant near Lockhart, Texas, just south of Austin. Lockhart is located about 30 miles (48 kilometres) south of Austin and is home to about 15,000 people and is known as the "barbecue capital of Texas".
The project, known as Project Evergreen, will be built in eight phases and construction will begin in January 2023. A spokesperson for the company declined to comment on its potential investment. But Micron and other companies are rushing to submit applications for the tax break, known as Chapter 313 of the Texas Tax Code, before it expires at the end of this year.
"We have not made any final decisions on the location, timing or size of the expansion," Micron spokeswoman Moira Whalen said in an email. "Submitting these applications now will allow us to keep options open for future expansion to meet long-term needs."
Micron has submitted its application for property tax relief to spend $160 billion on a new semiconductor plant in Texas
A record number of applications were filed this year under Chapter 313 of the Texas Tax Code. Another chipmaker, Samsung Electronics, has submitted multiple applications to build plants in Austin and Tyler, Texas. However, the company said it has no concrete plans to build a plant at this time.
In its application, Micron noted that high property taxes in Texas are not conducive to developers and that tax breaks would be a deciding factor in the company's decision to locate its factories in the state.
"Therefore, without Chapter 313 of the tax code, the project would have had a higher economic return outside of Texas," the filing reads.
Founded in 1978, Micron Technology is one of the leading manufacturers of semiconductor storage and imaging products, including DRAM, NAND flash memory and CMOS image sensors, with Apple as one of its most important customers. Last year, the company announced that it would invest US$150 billion in factories and R&D over the next 10 years.
Earlier this year, in August, Micron Technology announced that it would invest US$40 billion to build advanced memory chip manufacturing facilities in the US. This investment plan is part of the company's US$150 billion global investment programme announced last year.
In addition, last October, Micron Technology also announced plans to invest 800 billion yen (US$6.99 billion) to build a new plant in Hiroshima, Japan. The plant, which could specialise in the production of DRAM memory chips, is expected to start operations in 2024.
