The city of Taylor, Texas has promised to give Samsung a huge tax break if it chooses the location for a $17 billion semiconductor factory.
The city is competing with Austin in Texas, as well as potential sites in Arizona and New York, for a project that could create about 1,800 new jobs.
In a proposed resolution set to be voted on this week by Taylor City Council and Williamson County Commissioners, the city suggests offering Samsung several large tax breaks.
Among them would be a grant equivalent to 92.5 percent of assessed property tax for 10 years, 90 percent for the following 10 years and then 85 percent the decade after that. There would also be a 92.5 percent tax waiver on any new property built on the site for 10 years and development review costs would be repaid.
Taylor is thought to be the frontrunner for the construction, with Korean publication JoongAng Daily claiming that Samsung had already decided to build at the city.
Sources told the publication that Samsung was previously leaning towards Austin, where it could build near its one existing US plant. But after the fab was shut down during this year's Texas storm, the company was put off the location.
However, Taylor is still in Texas, so it would have many of the same grid issues, despite the city being home to the ERCOT Grid Control Center.
Should Samsung build in Taylor, it plans to break ground by the first quarter of next year and start production by the end of 2024.
Rival chipmaker TSMC is currently working on a $12bn Arizona semiconductor fab, and is thought to be considering expanding the site by another five fabs.