NXP Seeks Tax Breaks for US Expansion

Dutch chipmaker NXP is negotiating tax breaks with local governments in the US state of Texas in return for expanding its production capacity in Austin.

According to Financial newspaper the chipmaker wants to further expand its existing factories in Austin. For this desire NXP approximately 2.6 billion dollars (approximately 2.5 billion euros). This should provide the big city in the state of Texas with a total of 800 well-paying jobs.

fiscal advantages

In return for this mega-investment, the chipmaker wants to realize tax benefits in the form of a so-called Chapter 313 agreement. With the benefits of this arrangement, NXP could potentially avoid millions of dollars in taxes.

Meanwhile, representatives from the chipmaker are discussing the arrangement with the Austin Independent School District Board of Trustees. This local government will soon vote on whether the chipmaker can pursue its request for tax breaks. NXP is also seeking support from other local governments, including the City of Austin and the county in which the metropolis is located, Travis County.

Possible expansion of NXP production in and around Austin is not yet entirely certain. The Dutch chipmaker wants to make a final decision in the last quarter of this year. Once approved, the new production capacities should be operational in the second half of 2026.

Popular with chip makers

Austin is very popular with chipmakers. Manufacturers such as Silicon Laboratories and Cirrus Logic have their headquarters there. AMD also has a strong presence in the city. In addition to NXP, Samsung plans to establish a chip factory in the Austin area.

Trick† NXP again sees its turnover increase significantly