Goodyear officials 'anticipated' Samsung was not picking city for $17B plant, public documents show

Goodyear officials 'anticipated' Samsung was not picking city for $17B plant, public documents show

Article originally posted by: Phoenix Business Journal on January 7th 2022.
 
 
City of Goodyear documents show the city was notified the same day the news became public that Samsung Electronics Co. Ltd. had chosen not to locate its $17 billion plant in the West Valley municipality. 
According to documents obtained by the Phoenix Business Journal through a public records request, city officials were notified by the Arizona Commerce Authority late at night on Nov. 22 that the technology behemoth had picked Taylor, Texas, a suburb of Austin to build a 6 million-square-foot chipmaking plant where it will produce its most advanced computer chips ever and employ at least 1,800. 
Harry Paxton, the deputy economic development director for the city of Goodyear, said in an email to the mayor and city council that Samsung had notified the ACA earlier in the day that they had opted for Texas.
 
“As we anticipated we didn’t win this one, but I am hopeful even better ones are in store for Goodyear,” Paxton said in an email to economic development staff on Nov. 23, the day after the Wall Street Journal published a story announcing Samsung had chosen Taylor.
 
As the process, which ran from January 2021 to late November, went on there were several indications that the chipmaker had not opted to locate in Arizona. Samsung had several incentive agreements and meetings set up with various entities in Texas, indicating the process was further along than any discussions had been in Arizona.
 
Two sites that had been considered by Samsung in Arizona, one in Goodyear and the other in Queen Creek, had gone up for auction multiple times between April 2021 and November, and every time they were postponed when no buyers placed bids on the land. While officials had never confirmed those were the sites that Samsung was considering, both auctions were canceled after Samsung announced it was going to Texas.
 
City of Goodyear staff called the decision “hugely disappointing,” but applauded work done by economic development staff.
 
“In as hugely disappointing as this is, I hope you and the team feel very proud of the extreme hard work and commitment with which you worked against so many constraints, including time,” Goodyear Director of Engineering Sumeet Mohan wrote in an email to Paxton.

Arizona is now apparently in the running for another chipmaking plant.

A U.S. semiconductor company is scouting multiple sites in Arizona, Texas, California and North Carolina for a project that could have a capital investment of $40 billion or more with 5,000 to 10,000 jobs at full buildout. 

Multiple sources told the Triangle Business Journal in North Carolina that the project is on an accelerated timeline as the country, and the world, rushes to fill the gap in the global chip shortage that's hampering the economic recovery and causing supply chain disruption.

Last March, Intel (Nasdaq: INTC) announced plans to build two new chip factories in Arizona. Additionally, Taiwan Semiconductor Manufacturing Co. has already started construction on its massive semiconductor fab in north Phoenix.

 
 
Find the complete article here: https://www.bizjournals.com/phoenix/news/2022/01/06/officials-anticipated-samsung-not-opting-for-az.html