One of the world’s largest semiconductor testing companies and a major supplier to AI chip maker Nvidia is considering Fort Worth for a $1.3 billion manufacturing plant.
The Fort Worth City Council on Tuesday heard the details on proposed tax abatements that could help land the AeternZ Semiconductor Testing Corp. plant that would be located in the city’s Interstate-35W South corridor and bring more than 600 jobs.
Fort Worth’s economic development department is proposing a $50 million, 10-year tax abatement agreement of up to 65% of the project’s incremental real and business personal property taxes. In return, the company would guarantee $1 billion in real property improvements and $300 million in business personal property spending.
The company would need to meet the goal of creating 630 new jobs by the end of 2031. Those jobs would have a minimum average annual salary of $80,000, with an average annual payroll of $50 million.
If the company fails to meet those requirements, they would forfeit the abatements, according to the city.
AeternZ Semiconductor would have a goal of spending 30% of real property improvements with area small businesses.
Fort Worth is not the only area under consideration for the plant, said Brianna Brown, assistant economic development director, during a presentation to the council during its Tuesday work session.
She noted “another North Texas site is under consideration,” as well as an out-of-state location.
The company is also working with the state on the Texas Semiconductor Innovation Fund, a grant program supporting semiconductor manufacturing, design, research and workforce development.
The location under consideration is a 23-acre site at 273 W. Everman Parkway, part of the Fort Worth South Business Park. It would be the largest investment to date in the I-35W South corridor.
If selected, it would be the first manufacturing site in the U.S. for the company. The proposed plant would support a full range of semiconductor back-end operations and include a clean room infrastructure.
AeternZ Semiconductor is a subsidiary of Taiwan’s King Yuan Electronics Co., which has over 9,500 employees and has annual revenues of $1.02 billion.
King Yuan is a supplier to chip maker Nvidia and other semiconductor manufacturers, providing wafer probing, final product test and assembly service for the semiconductor back-end supply chain. According to Reuters, the company announced in June it was planning to invest $1.4 billion in the U.S. to support its growth and strengthen its supply chain.
On Wednesday, Nvidia said it would provide $1.1 billion in advance to reserve future U.S. testing capacity from King Yuan.
The Fort Worth City Council is scheduled to vote on the incentives at its Oct. 27 meeting.
If King Yuan selects Fort Worth for the plant, it would be the largest of several electronics manufacturing sites that have selected the city to establish operations.
In July, Taiwan-based Wistron began work on two AI supercomputer manufacturing facilities in Fort Worth’s AllianceTexas development, investing $761 million and with expectations of employing more than 800. Also, Taiwan-based Foxlink in July opened its first North American plant with an expectation of creating 900 jobs.
Adding another plant connected to the chip industry will help establish a semiconductor ecosystem that will be a competitive advantage for Fort Worth, Brown told the council.
Bob Francis is business editor for the Fort Worth Report. Contact him at bob.francis@fortworthreport.org.
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