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Samsung contributed $26.8B to Austin economy
Samsung released its annual economic impact report for the Austin area, and the numbers for 2023 are drastically higher than all the years prior. This comes as the tech giant's chip factory in Taylor gets ready to open its doors.
TAYLOR, Texas - Samsung released its annual economic impact report for the Austin area in late February, just as the Taylor plant nears operations.
It says it contributed $28.6 billion to the local economy in 2023.
That’s nearly double what Central Texas saw in 2022.
"It opened a lot of eyes about what Samsung's been doing, but this is just the beginning," said Taylor Mayor Brandt Rydell.
"To put these numbers in perspective, about five or six years ago, Rydell said the entire city of Taylor, buildings included, was valued at less than a billion dollars," said Rydell. "This is a very dramatic change for Taylor and again for our economy."
Samsung also reports more than 18,000 direct and indirect construction jobs in Taylor.
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Samsung Taylor plant operational this year
The Samsung plant being built in Taylor will be operational this year. But, company officials said they cannot say when mass production of new computer chips will begin.
Both the Austin and Taylor campuses supported about 38,000 jobs last year too.
"The strain is on our transportation network, and you know, the county, the city, the state, and with Samsung we’re trying to work that the best we can, but it is a challenge," said Rydell.
Downtown businesses, like KINCL House of Antiques, are on the frontlines of this economic impact.
"We see a lot of out-of-towners," said Barb Sellars, a co-owner of KINCL House of Antiques. "People are buying more smalls now and not large things, so it’s a lot of small sales."
Sales and use tax revenue skyrocketed. Taylor recorded a more than 220 percent increase last year. Rydell said most of that is thanks to big construction purchases from Samsung.
"A lot of those purchases are one-time purchases for the construction, so we’re trying to make purchases that don’t rely on that ongoing revenue stream," said Rydell.
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But not all the dollar signs are so welcome.
Sellars said rent is rising too.
"I've seen a lot of small businesses go out of, especially downtown, go out of business because the rent goes up so high," said Sellars.
Only a few months into 2024, business owners and elected officials can both agree these numbers are likely not even the peak.
"I think that it's probably going to be even bigger," said Sellars.
"The outlook for this community could not be brighter," said Rydell.
The plant in Taylor is expected to begin operations in the next few months.
Samsung told FOX 7 Austin it has invested more than $47 billion across the country over the last 28 years.
"Samsung’s heightened localized impact in Texas, emphasizes the company’s long-term commitment to driving future innovation and bolstering the domestic supply chain," Samsung said. "We are proud to call this vibrant community of Central Texas home."