Posting Language
Title
Approve a resolution nominating Spansion LLC, located at 5204 East Ben White, for designation by the Governor’s Office of Economic Development and Tourism as a single Texas Enterprise Project in accordance with Texas Government Code Chapter 2303. Funding: This item has no fiscal impact. The State Enterprise Zone designation would not include any additional incentive from the City.
De
Lead Department
Economic Development.
Fiscal Note
This item has no fiscal impact.
Prior Council Action:
October 18, 2007 - Council approved Ordinance No. 20071018-008 electing to participate in the Texas Enterprise Zone Program.
November 4, 2010 - Council approved Ordinance No. 20101104-046 amending its program to identify additional local incentives for the Texas Enterprise Zone Program.
November 14, 2019 - Council approved Ordinance No. 20191114-068 amending its program to identify additional local incentives for the Texas Enterprise Zone Program.
August 29, 2024- Council approved Ordinance No. 20240829-154 amending its program to identify updated local incentives for the Texas Enterprise Zone Program.
November 7, 2024- Council approved Ordinance No. 20241107-041 amending its program to update local incentives for the Texas Enterprise Zone Program.
For More Information:
Anthony Segura, Interim Director, Economic Development Department, 512-974-3187; Haileigh Meyers, Program Manager II, 512-974-2254.
Additional Backup Information:
Spansion LLC (Spansion) is a semiconductor company creating chips for power systems and Internet of Things products. The parent company, Infineon, employs over 58,600 employees worldwide, with 960 positions being located at the facility on East Ben White.
Over the next five years, Spansion anticipates job retention and investment noted below. The company will be investing over $83 million into their fabrication facility located on East Ben White. The current facility is 30 years old and in need of upgrades to keep speed with the evolving semiconductor market. The company anticipates roughly $45.5 million to be spent on equipment and tools for the facility and $37.9 million to be spent on upgrading the facilities. Spansion expects to retain 500 existing jobs for benefit under the Enterprise Zone Program. The facility at 5204 East Ben White is not located within a designated Enterprise Zone. As such, the company would be required to hire or retain at least 35 percent of their jobs with individuals that meet economically disadvantaged enterprise zone residence or veteran requirements to be eligible for a refund.
The State Enterprise Zone designation would not include any additional incentive from the City of Austin. Although the City is required to nominate a company, the State is ultimately responsible for the designation. If designated by the State, Spansion will be eligible for a refund of State sales and use taxes.
This item requests the City of Austin’s support of a Texas Enterprise Zone Single Designation. Spansion seeks to submit its Texas Enterprise Zone Application to the Office of the Texas Governor for the March 3, 2025, application round.