AUSTIN (Talk1370.com) -- A chipmaking boom in Central Texas took another turn Tuesday night, with officials from NXP making a presentation to Austin ISD officials about a proposed Chapter 313 tax incentive deal.
The proposed $2.6 billion expansion could create up to 800 new jobs, officials said, as NXP looks to expand on its workforce of more than 1,300 already in the Austin area where it already operates two facilities, including its headquarters.
District officials say the proposal would help AISD keep just over $67 million out of state-mandated recapture payments that are used to fund other districts under the "Robin Hood" school finance system. For the 2022-23 school year, AISD's recapture payment is expected to be $846 million - around half of the district's $1.6 billion general fund.
Under a Chapter 313 program, AISD would be reimbursed by the state for most of the incentives provided. According to the Texas Comptroller's office, Samsung's recent expansion in Taylor, along with a Toyota plant in San Antonio, are past examples of Chapter 313 developments.
NXP says local incentives are a requirement for the chipmaker to receive additional funds from the federal CHIPS for America Act, which aims to provide more than $50 billion in grant funding for facility construction to chipmakers.
Company officials said the new jobs would pay an average annual salary of $100,000 and up. A decision on the project is expected by the end of this year, with construction beginning in 2024, with the facility coming online in the fourth quarter of 2026.
No decision on the proposal was made Tuesday night; trustees may add it to their agenda for their next meeting on May 19. NXP officials said they will also met with both Travis County and the City of Austin on additional potential incentives.