In the next few years, Korean-based Samsung Semiconductor Inc. plans a major expansion and "a considerable increase" in the workforce at its North San Jose, California manufacturing facility.
Governor Jerry Brown, San Jose Mayor Chuck Reed and Santa Clara County Board of Supervisors President George Shirakawa signed a Memorandum of Understanding with Samsung that outlines the company's plans to build a new expanded Research and development facility.
"This new facility will considerably increase the company's current employment and significantly increase the size of the existing facility. Locating Samsung's R&D facility in San Jose will stimulate the local economy through investment and add further depth to the Silicon Valley innovation ecosystem and California," the agreement said.
"Samsung is excited about the prospect of expanding our facilities in the State of California. The signing of a Memorandum of Understanding demonstrates our growing partnership with the City of San Jose and highlights our shared vision of investing for the future of Silicon Valley," said. Jong Joong Kim, President of Device Solutions Management Office, Samsung Electronics.
Samsung officials said specific details about its expansion plans, such as the size of its investment and hiring estimates, are still being formalized. According to the Memorandum of Understanding; "The City, County, and Samsung will identify the appropriate level of investment and number of jobs as consideration for the incentives included in the final agreement."
The expansion will stimulate the local economy by significantly increasing both the size of Samsung's existing facility on 3655 North 1st Street in North San Jose and the number of people employed there, the Governor's Office said.
"Samsung's expansion in California is great news and it further strengthens the state's role as a world leader in innovation," said Governor Brown. "Here's a case where government and business work together and everyone benefits."
"I want to thank Samsung for its commitment to staying and growing in San Jose," said Mayor Reed. "For more than twenty years, Samsung has been a leader in the type of innovation that is the hallmark of the capital of Silicon Valley. San Jose is committed to working at the speed of business to ensure the success of Samsung's expansion plans."
Over the past several months, the California Governor's Office of Business and Economic Development team has worked directly with Samsung and partnered with the City and County officials to assist with site selection, workforce development and permitting issues.
"Santa Clara County is pleased to partner with Samsung to make the San Jose expansion possible. We look forward to working with Samsung, the State of California and the City of San Jose as this project comes to fruition," said Santa Clara County Board of Supervisors President George Shirakawa.
The State and City of San Jose are offering Samsung an incentive package to assist in its expansion plans including; a job training grant, expedited permitting and proposed tax credits to facilitate infrastructure improvements, equipment purchases, facility expansion and research and development. The site is also located in San Jose's Enterprise Zone making the expansion eligible for additional tax credits from the city.