Dutch chip maker NXP is negotiating tax breaks with local governments in the US state of Texas in exchange for expanding its production capacity in Austin.
As stated in it Financial newspaper The chip maker wants to further expand its plant in Austin. For this purpose NXP Approximately $ 2.6 billion (approximately 2.5 billion euros). It should provide a total of 800 well-paid jobs for the largest city in the state of Texas.
In return for this mega-investment, the chip maker wants to realize tax breaks in the form known as Chapter 313 Agreement. With the benefits under this arrangement, NXP can avoid millions of dollars in taxes.
Meanwhile, chip maker representatives are discussing the arrangement with the Austin Independent School District Committee. The local government will soon vote on whether the chip manufacturer can continue to apply for tax breaks. The NXP is also seeking the support of other local governments, including the city of Austin and the county in the metropolis of Travis County.
The potential expansion of NXP production in Austin and surrounding areas is not yet certain. The Dutch chip maker wants to make the final decision in the last quarter of this year. Once approved, the new production capacity will be operational in the second half of 2026.
Popular among chip manufacturers
Austin is very popular among chip manufacturers. Manufacturers such as Silicon Laboratories and Cirrus Logic have their headquarters there. AMD also has a very strong presence in the city. In addition to NXP, Samsung is considering setting up a chip factory in the Austin area.
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