Will the New Samsung Semiconductor Plant in Taylor Affect Austin Real Estate Trends?
Last month, Samsung Electronics announced plans to build a new $17 billion site in Taylor, Texas. Samsung will open their newest semiconductor fabrication plant as part of its largest-ever investment in the US.
Samsung’s new location will be more than 5 million square meters and is expected to strengthen the value of Austin’s already-increasing property values. Texas Governor, Greg Abbott, announced, “Samsung’s new semiconductor manufacturing facility in Taylor will bring countless opportunities for hardworking Central Texans.”
Samsung’s new factory is expected to improve the domestic supply chain of logic chips used in mobile devices, 5G technology, high-performance computing (HPC) units, and artificial intelligence (AI) applications. The project is set to break ground in early 2022, with completion slated for late 2024. The Taylor investment includes buildings, property improvements, machinery and equipment, and community participation commitments. With the addition of this facility, Samsung’s total investment in the US will exceed $47 billion since 1978.
After reviewing possible locations in the US, Samsung’s decision to build in Texas was based on several local factors, including the semiconductor ecosystem, infrastructure stability, and government support. Samsung favored the location’s proximity to their existing manufacturing site in nearby Austin, which is also slated for a significant expansion investment next year.
Samsung’s Taylor announcement is expected to create over 2,000 high-tech jobs and thousands of supporting jobs in the area. As part of its co-investment in the community, Samsung has committed financial support for the new Samsung Skills Center within the Taylor Independent School District. This innovative training program will provide students with career preparation in technology, while providing internships and employment opportunities at Samsung’s local production facilities.
Already on-target for another record-breaking year in residential home sale average prices, Austin and the surrounding area will remain a hot market for the foreseeable future. With the combination of population influx and low mortgage rates, the trend of double-digit property value growth seen in fall 2021 year-over-year sales is expected to continue.
Resources:
https://www.noradarealestate.com/blog/austin-real-estate-market/
