ARM seeks sales tax rebate, says it will create 150 jobs over 5 years

Nov 18, 2014
Austin American Statesman

British semiconductor company ARM Holdings is seeking state incentives for a new $12 million facility in southwest Austin, which the company says will create 150 new jobs over the next five years

The company outlined the goals in filings with the Travis County Commissioners Court, which on Tuesday is scheduled to consider designating the project as an Enterprise Project under the state Enterprise Zone program

Such a designation would allow ARM Holdings to seek up $1.25 million in state sales tax rebates. Granting the designation would require no funds from the county

ARM, which employs more than 340 people in Travis County, is the primary chip designer for smartphones and other mobile products

ARM has had a presence in Austin since 1997. Austin is is one of ARM’s four design centers; the others are in the U.K., France and a soon-to-be-opened center in Taiwan, said spokesman Phil Hughes

ARM said it will spend about $12 million to build and finish out the four-story 120,000 square foot facility at 5707 Southwest Parkway that will accommodate its business operations needs

It’s expected to be ready for occupation in August of next year

The company also says it will invest an additional $44 million in hardware and software at its data center facility that it leases in Travis County

ARM says it will retain all its full-time employees and will create 150 new full-time jobs at it Travis County facilities over the next five years at an average salary of $88,000

Last month, the company reported third-quarter sales that missed expectations but ARM reported an increase in demand for its chips that go into mobile and other devices

ARM said its third-quarter revenue rose 12 percent year-over-year to $320 million, with earnings per share of 29 cents, up 16 percent. But analysts had been expecting revenue of $327 million and 29 cents

The company’s stock dropped on that news, but it was up almost 1 percent Monday, at $42.07 a share

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