A Taiwanese electronics manufacturer that builds computers, smartphones and tablets for tech giants like Apple Inc., Dell Technologies Inc. and Alphabet Inc. — plans to bring at least 1,000 jobs to the Austin area over the next decade.

This week, Georgetown and Taylor city councils are considering $6.2 million in tax breaks to bring Compal USA Technology Inc., a subsidiary of Taiwanese-based Compal, to sites in their cities.

According to city documents, Compal would create 900 jobs at a Taylor manufacturing site at 1069 FM 3349, just west of Samsung Electronics’ new semiconductor plant. The company plans to create an additional 100 jobs at a Georgetown services center at 1800 Aviation Drive, just off Interstate-35.

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Along with the added job investment, the companies’ leases account for more than 575,000 square feet and investments of more than $235 million, according to council documents.

Compal, which announced plans in October to lease space in Williamson County to strengthen its North American presence, plans to spend $6

5.7 million on the Taylor manufacturing site and another $28.4 million on the Georgetown service center.

If approved, Compal would join several major manufacturers and employers establishing large sites in the growing Austin-area suburbs.

Samsung Austin Semiconductor, a subsidiary of global technology giant Samsung Electronics, plans to open at least part of a massive manufacturing facility in Taylor by the end of next year.

Compal would become the city’s second-largest employer behind Samsung, which is expected to establish about 1,800 permanent jobs once the facility is fully operational.

According to Taylor council documents, Compal would spend at least $200 million in improvements, machinery and equipment at the site. The Taylor facility would manufacture, assemble and provide maintenance services for consumer electronics, including personal computers, motherboards, servers, smartphones, game consoles, tablets, automotive electronics and smart-home devices. The company would also house research, development, design and communications teams at the site, according to council documents.

The Taylor performance-based tax abatement agreement, estimated at about $4.4 million, would give Compal a 50% relief of the taxable value of the improvements over the next decade, a 50% relief on tangible personal property over that same period and a rebate on construction taxes.

In Georgetown, Compal is entering a 10-year lease for its site, which will be a server service center to support enterprise and cloud infrastructure needs, council documents said. Its minimum investment is $35 million.

Georgetown City Council will consider performance-based incentives on Tuesday. These includes up to $1 million in infrastructure funding, $250,000 for construction materials sales taxes and a 10-year, 50% tax break on business personal property and a 25% tax break of real property.

By: DocMemory
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