Fort Worth Approves 10-Year Abatement for $1.3B AeternZ Chip Plant

Fort Worth City Council on October 27 approved a 10-year tax abatement for AeternZ Semiconductor Testing Corp. The company plans at least $1.3 billion of investment at an existing facility at 273 W. Everman Parkway in the Fort Worth South Business Park. The abatement covers up to 65% of incremental real and business personal property taxes. City staff valued the incentive at $50 million.

AeternZ is the Texas subsidiary of Taiwan-based King Yuan Electronics Co., which tests chips for Nvidia. The plan calls for about $1 billion in real property improvements and $300 million in business personal property. The company has committed to at least 630 full-time jobs by the end of 2031, with an average annual salary of $80,000.

King Yuan paid nearly $80 million for the cleanroom facility, according to Connect CRE. It would be the company's first U.S. manufacturing plant.

A state filing registered October 29 describes a 507,100-square-foot renovation and addition with an estimated construction cost of $300 million. KARAarchitecture + interior LLC is the designer. A construction timetable and contractor have not been announced.