< PreviousInvestor Incentives The EEC and its new Capital City offer sets of financial incentives and nonfinancial promotional privileges to foreign investors that are among the most attractive in Asia. Tax incentives to foreign firms include, among others: 1. Exemption of corporate income tax (CIT) on the net profit derived from an approved business for up to 15 years; 2. Reduction of CIT on the net profit, derived from approved business • Reduction of CIT not exceeding 50% of the normal rate for up to 10 years, for no exemption of CIT • Reduction of CIT not exceeding 50% of the normal rate for up to 5 years commencing from the expiry date of corporate income tax exemption, if the exemption was less than 8 years; 3. Deduction of annual loss incurred during the period of CIT exemption from the net profit accrued after the expiration of the exemption period; 4. Deduction of the investment capital of approved businesses from net profit; 5. Double deduction of the cost of transportation, electricity and water supply; 6. Deduction from net profit of the cost of installation or construction of facilities used in the approved business; 7. Exemption of dividends from taxable income; 8. Exemption of fees for goodwill, copyrights and other rights from taxable income; 9. Exemption of import duties on machinery; 10. Exemption of import duties on materials imported for R&D; 11. Exemption of import duties on raw materials or essential materials imported for use in production for export purposes; 12. Reduction of import duties on raw materials or essential materials; 13. Exemption of import duties on items imported to re-export; 14. Exemption of export duties. Nontax incentives include, among others: 1. Right to own land in a promotional zone which is subject to the consideration of the EEC Negotiation Committee; 2. Right to own condominium which is subject to the consideration of the EEC Negotiation Committee; 3. Right to bring foreign workforce and their dependents who can reside in Thailand, the number and period, which is subject to permission of the EEC Secretary-General; 4. Rights to obtain EEC work permits for who is brought into Thailand by Business Operator in the EEC Promotional Zone, is entitled to work under the permit issued by the EEC Secretary-General; 5. Exemption from laws on exchange controls; 6. Right to use foreign currency for payment of goods and services; 7. Other rights and benefits as specified under the laws of Competitiveness Enhancement. To these foreign investing firms’ benefits are added a variety of personal tax privileges to their expat employees such as substantially reduced personal income tax rates. More information can be found at www.eeco.or.th. Dr. John D. Kasarda is the President of the Aerotropolis Institute China and a specialist in smart city development for the Office of Eastern Economic Corridor of Thailand. S I T E S E L E C T I O N SEPTEMBER 2024 1718 SEPTEMBER 2024 S I T E S EL E C T I O N NOR TH AMERICAN REPOR T S Incentivized CHIPS Four months after SK hynix announced its $3.8 billion advanced packaging fabrication and AI R&D facility at Purdue University Research Park, CHIPS and Science Act funding has now swooped in. In August 2024, the U.S. Department of Commerce and SK Hynix signed a non-binding preliminary memorandum of terms that will direct a maximum of $450 million in federal incentives toward the project. The facility, to be located in West Lafayette, Indiana, is set to mass- produce high-bandwidth memory semiconductors by mid-2028. CHIPS funding will additionally be used to construct a research hub at the site for future R&D projects and collaborations between SK Hynix, Purdue University and their institutional and industry partners. Harman Plays the Hits in Querétaro and Chihuahua Through its automotive division, electronics company Harman, an independent subsidiary of Samsung Electronics Co., will invest in two new Mexico facilities. Harman Automotive has said the states of Querétaro and Chihuahua were selected for the projects. The city of Santiago de Querétaro in the state of Querétaro will gain a $115 million investment toward an entertainment systems manufacturing plant, creating 1,100 new jobs once complete. North of that location in Chihuahua’s border region, Harman is investing $15.9 million to construct a plant focused on plastic injection molding of parts to enhance the industry’s supply chain. The site in Juarez will be the company’s fourth in that location, with plans to initially produce 250,000 units per year, scaling to 7 million over fi ve years. Harman has said this facility will create 100 new direct jobs. SK hynix’s CHIPS funding announcement means U.S. preliminary agreements have been reached with fi ve global semiconductor manufacturers, including Intel, Micron, Samsung and TSMC. Photo courtesy of Purdue University/Kelsey Lefever Harman’s new Querétaro site will be the company’s fourth plant in the state. Photo courtesy of Harman International Microsoft Boosts Capacity According to documents fi led by the Texas Department of Licensing and Regulation, Microsoft has plans to soon grow its San Antonio campus. A proposed $482.6 million investment will go toward the construction of a new 244,000-sq.-ft. data center building. The addition will double the size of the data center campus and will include rental space for fi ve new customers. Microsoft anticipates beginning construction of the building in 2026. Microsoft’s latest project, named SAT82, will be at the same site where SAT80 and SAT81 are due to begin initial operations this year. Photo courtesy of Microsoft by ALEXIS ELMORE alexis.elmore@siteselection.com S I T E S E L E C T I O N SEPTEMBER 2024 19 Sunny Skies Charge New Investment Ebon Solar announced plans for a new solar cell manufacturing facility in Albuquerque, New Mexico, in August 2024. The $942 million project lands in the city’s Mesa del Sol industrial development area and will create 900 new jobs. “The choice of Albuquerque for our investment aligns with our commitment to sustainable innovation, and New Mexico o ers abundant solar resources, favorable renewable energy policies, and a dedicated, skilled workforce,” said Ebon Solar CEO Judy Cai. “These factors enhance Ebon Solar’s capital investment and production capabilities and make the City of Albuquerque, Bernalillo County and the State of New Mexico ideal partners as we integrate into the clean energy market.” Construction of the 834,000-sq.-ft. solar cell manufacturing plant will ensure the company can conduct the full lifecycle of its operations under one roof. Ebon Solar selected New Mexico for its solar resources and renewable energy policies. Photo: Getty Images Amazon Enters A New Market Puerto Rico is set to gain its fi rst Amazon delivery station by 2025. The new 100,000-sq.-ft.-plus San Juan facility will be introduced by commercial real estate developer Ryan Companies U.S., representing the company’s fi rst facility built o the nation’s mainland. “Puerto Rico is an ideal place to do business and our new delivery center will give us the opportunity to serve our customers more e ciently and faster,” said Amazon Vice President of Public Policy Ashleigh de la Torre. “We are excited about our future on the island and what this means for our customers as we continue to grow.” The facility itself will create 100 new jobs and serve as a central location for drivers to load and deliver packages, potentially creating 200 delivery driver roles. A New Battery’s Arrival California-based industrial battery manufacturer Natron Energy announced in August 2024 it would locate its fi rst U.S. sodium-ion battery gigafactory project in North Carolina. Plans include a 1.2 million-sq.-ft. manufacturing plant to be located an hour east of Raleigh at Edgecombe County’s Kingsboro Megasite. The company’s investment of almost $1.4 billion toward the 437-acre site brings an anticipated 24 Gigawatts of sodium-ion batteries per year once complete. Uses of these batteries include powering data centers, microgrids and EV fast charging stations. The state awarded the project with a Job Development Investment Grant which could bring Natron a reimbursement of up to $21.7 million over 12 years. At the time of full operation the plant will create 1,000 new roles. Amazon aims to ensure its delivery service is faster and easier in Puerto Rico. Photo courtesy of Amazon Edgecombe County is expected to apply for a $30 million grant to support the project’s development. Photo courtesy of Natron EnergyINVES TMENT PROFILE: SAN BERNARDINO COUNTY, CALIFORNIA Powering the Path to Sustainability San Bernardino County Builds A Green Energy Hub. A series of renewable energy projects in San Bernardino County are showing developers a path to sustainability for California. And for this 20,000-square-mile county of 2.2 million people in the Inland Empire, the current investment surge is just the beginning. Bill Love, CEO of BioStar Renewables, is one of the green energy developers leading the way. His firm, which has around $100 million in built assets in sustainable energy, completed construction on a waste-to-energy conversion plant in the city of San Bernardino, the county seat, in 2022. “We are a renewable energy developer. We have been in business for 13 years,” says Love. “I come from a solar construction background; and this is our first renewable gas project. We develop, own and operate renewable energy assets around the country.” by RON STARNER ron.starner@siteselection.com 20 SEPTEMBER 2024 S I T E S EL E C T I O N BioStar Renewables operates a food waste-to- energy conversion plant in San Bernardino County. Images courtesy of BioStar Renewables e BioStar plant that operates in San Bernardino is unique. “We take organic food waste that is normally going to landfi lls and divert that into anaerobic digestive tanks,” Love says. “ at means without oxygen. It converts organic material to biogas. We clean it and run it through electricity-generating engines, and we put that on the grid.” Normally, this waste would go into a landfi ll, where the waste would make methane over three to fi ve years and send that methane gas into the atmosphere. “It is the most potent greenhouse gas emission,” Love says. “We capture % of the methane that is available in the material. Our process is very effi cient.” BioStar takes advantage of a state program run under SB . e program is designed to enable cities to divert organic materials from landfi lls. “ is is one of the fi rst successful projects of its kind.” says Love. Launched in , the San Bernardino Waste-to-Energy project diverts , tons of pre-consumer food waste from the Coachella and Lamb Canyon landfi lls each year. As a result, , gallons per day or million gallons of food waste per year will create the following annual totals: • ,, kWh of electricity • , gallons of fertilizer • , tons of compostable fi ber • ,, gallons of clean water for industrial reuse. e facility has three digesters, with a total liquid capacity of . million gallons, and space for future expansion. e methane-rich biogas is fed through two .-MW engines, creating caseload renewable electricity that provides stability to the local power grid. Also, the project obtained a .-MW utility grid interconnect. e project is supported by a -year power purchase agreement with Southern California Edison. e site layout is designed to handle additional feedstocks to increase volume and revenue while sending excess biogas to heat recovery or to the fl are. BioStar Finds ‘A Very Stable Workforce’ Love says BioStar selected San Bernardino because “the project is collocated with one of the major feedstock providers — Denali organic recycling. at reduces the need for hauling costs. It is very effi cient. Other people deliver to the facility.” Love says his fi rm began construction in . “We’ve been operating for three years”, he says. “ We’re also developing solar projects across the country. We have a solar fi eld in Riverside County that provides power to Temecula and Lake Elsinore. ose are just south of here.” He adds that his company loves the local workforce. “Our plant would qualify for one of Mike Rowe’s ‘Dirty Jobs’ shows,” he says. “We have had very little turnover. It is less than % a year. We have a very stable workforce.” Incentives helped close the deal, he adds: “We received a sales tax abatement on the purchase of equipment used during construction and a $ million grant from CalRecycle.” BioStar is part of a burgeoning trend. Around San Bernardino County, cleantech companies are investing heavily into sustainable power solutions. One of them is AXA IM Alts, a global leader in alternative energy investments. AXA has teamed up with Cabot Properties to build the fi rst amenity solar project in California. e two fi rms announced July that they had completed a -kW rooftop solar array on a ,-sq.-ft. industrial property in Fontana. e S I T E S E L E C T I O N SEPTEMBER 2024 21 We have had very little turnover. It is less than 10% a year. We have a very stable workforce.” — Bill Love , CEO, BioStar Renewables We have had very little We have a very stable workforce.”22 SEPTEMBER 2024 S I T E S EL E C T I O N 211-panel installation, AXA’s first solar array in California, will provide low- cost renewable power to the industrial tenants. The system should produce more than 200 kWh of renewable energy annually and reduce onsite carbon dioxide emissions by more than 141 metric tons. “AXA IM Alts is committed to delivering positive environmental and social change through its investments,” said Steve McCarthy, head of Real Estate North America at AXA. “Development is underway on several other U.S. solar projects as we scale our solar provision and roll out additional capacity across our nationwide industrial portfolio.” Power Users Need a Good Backup In San Bernardino County, advancing sustainability also means advancing the technology that enables the efficient transmission of power. DSPM (Digital Signal Power Manufacturing), based in the city of San Bernardino, is a leader in this field. An engineering-based design and manufacturing company, DSPM creates integrated engineering platforms to ensure quality and reliability of backup power systems for applications in elevators, stadium lighting and many other uses. DSPM personnel have been involved in the power quality business since 1974. The company itself has been in business since 2002. “We do emergency power backup inverters,” says Rose Hanson Corona, general manager of DSPM, which was started by her father, Milton Hanson. “He decided to go off on his own and start DSPM with his life savings in 2002. We keep trains running during a power outage. We use elevator kinetic energy to recharge our batteries; and we have developed an inverter that runs off the third rail power that goes up to 500 volts DC very easily.” AXA IM Alts and Cabot Properties have completed the first amenity solar project in California, providing solar power to industrial tenants in Fontana. Photo courtesy of AXA IM Alts S I T E S E L E C T I O N SEPTEMBER 2024 23 When her father founded the business, the company was producing eight to units a year. “We produce up to , units a year now,” says Corona. “We have come a long way since . We have employees today. We began in Ontario, but we have been in San Bernardino since .” e central location of San Bernardino is an ideal fi t for the fi rm, says Corona. “It allows us to be close enough to Los Angeles to have major suppliers and customers here — and far enough out to be close to Arizona and Nevada and enable us to conduct business there too,” she said. San Bernardino’s eastern boundary borders both Nevada and Arizona. She adds that “I just had a meeting in Phoenix and I was able to get there quickly.” It is much calmer here. Plus, there are transformer manufacturers and breaker manufacturers who are in Southern California. We can pick up and work with them easily.” DSPM has forged a successful business supplying power solutions to customers in the space industry, defense industry, education, sports, healthcare and other fi elds. Corona says that the plethora of construction projects across Southern California creates a constant demand for DSPM products. “Construction sites are the biggest source of our business. at drives the need for more emergency lighting. All these things need an emergency lighting inverter — schools, hospitals, stadiums, bases, etc.,” she says. “Elevator inverters are going into new construction mostly. ey have run out of space in LA. It has moved out to the Inland Empire. We supply Sea World and Disneyland and other places. We go to the sites and maintain them personally. We power the big stadium at Sea World. We also supply e Living Dead Zombies ride at Universal. We supply locations at Disney World in Florida. Military bases are a big market for us across the U.S. too.” San Bernardino County Lends a Hand to DSPM In terms of workforce, Corona says that “we fi nd an exceptional quality of employees in the county. We get a lot of good candidates, especially in the engineering fi eld. We partner with and off er internships to local colleges. San Bernardino County set me up with the local high school here. Local high school students will come here to work.” Corona adds that DSMP recently expanded to service the elevator market and the third rail market. “ at has been a huge expansion for us, providing emergency power to these sectors. Two power battery packets will take you up a fl oor or down a fl oor. ere is a huge market for backup systems like this. It can run for minutes too. at allows for greater practice of emergency evacuations,” she said. She also credits the folks at the San Bernardino County Economic Development Department with helping DSPM grow its business. “ ey have been extremely helpful,” she says. “Somebody recommended that I look into the county to help with exporting our products to the world. e county has put me in touch with embassies worldwide. ey also introduced me to someone who will feature us in a trade show with , attendees. We appreciate that help.” This Investment Profile was prepared under the auspices of San Bernardino County. For more information, contact the County’s Economic Development Department at 909-387-4460. On the web, go to www.SelectSBCounty.com. SAN BERNARDINO COUNTY SAN FRANCISCO LOS ANGELES SAN DIEGO We fi nd an exceptional quality of employees in the county. We get a lot of good candidates, especially in the engineering fi eld.” —Rose Hanson Corona, General Manager, DSPM take you up a fl oor or down a fl oor. We fi nd an exceptional take you up a fl oor or down a fl oor. 24 SEPTEMBER 2024 S I T E S EL E C T I O N W ORLD REPOR T S by ALEXIS ELMORE alexis.elmore@siteselection.com Infi neon to Invest Up to $7.6B, Hire 4,000 in Malaysia Germany’s Infi neon Technologies AG in August opened the €2 billion, 900-job fi rst phase of a new fab in Kulim, Malaysia, that at full buildout after a €5 billion second phase will become the world’s largest 200-mm. silicon carbide (SiC) power semiconductor fab, employing as many as 4,000 people. “SiC semiconductors increase e ciency in electric vehicles, fast charging stations and trains as well as renewable energy systems and AI data centers,” the company said, noting it has received €5 billion in orders and €1 billion in pre-payments connected to the expansion. “This major investment, which will locate the world’s largest and most competitive SiC power fab on our shores, will create jobs and opportunities, as well as attract suppliers, universities and top talent,” said Malaysian Prime Minister YAB Dato’ Seri Anwar Ibrahim. “Moreover, it will support Malaysia’s e orts to protect our climate by boosting electrifi cation and increasing the e ciency of many applications, including electric cars and renewable energy.” Germany Wants Hydrogen With over $180 million in grant funding from Germany’s federal government and the northern state of Mecklenburg-Vorpommern, hydrogen plant developer H2APEX will move forward with the construction of a $226 million green hydrogen facility. The company expects its 100-megawatt electrolysis plant to become operational in 2027 and supply hydrogen to several regions of the country. Over 7,500 tons of green hydrogen will be produced here per year and transported to various regions around Germany, connecting to platforms like the Flow pipeline and Green Octopus that serve large urban areas. The new facility in Rostock-Laage will boost hydrogen production in northern Germany. Photo: Getty Images The new Infi neon site in Kulim could attract as much as $7.6 billion of investment by the time it’s fully built out. Photo courtesy of Infi neon AG Small Molecules Amplify Investment Pfi zer has announced that it invested $743 million to expand its four-year-old Active Pharmaceutical Ingredient (API) plant at Singapore’s Tuas Biomedical Park. At 429,000 sq. ft., the upgraded facility will begin production of small molecule APIs used in the pharmaceutical manufacturer’s oncology, pain and antibiotic medicines. “With the facility expansion, Pfi zer continues to grow its resilient and innovative global supply network. This expanded facility not only grows our overall manufacturing footprint but also strengthens our ability to manufacture breakthrough medicines that change patients’ lives,” said Pfi zer Chief Global Supply O cer and Executive Vice President Mike McDermott. Added capacity will allow Pfi zer to introduce more processing suites, dry-end suites and more as needed. The project creates 250 new jobs for the region. Pfi zer Chief Global Supply O ce Mike McDermott [center right] and Singapore Deputy Prime Minister Gan Kim Yong [center left] open the new API facility in July 2024. Photo courtesy of Pfi zer S I T E S E L E C T I O N SEPTEMBER 2024 25 Europe’s Largest Data Center Campus By securing an award for additional power from Portugal-based energy company Redes Energéticas Nacionais (REN), Start Campus’ SINES DC campus has now become Europe’s largest colocation site. The move allows for the site’s IT capacity to grow from 495 megawatts (MW) to 1.2 gigawatts once complete. The campus is currently under development until 2030 around two hours from Lisbon in Sines, Portugal. The campus will feature six buildings, introducing the initial 14 MW of capacity in its fi rst building by the end of 2024. “Securing this additional grid capacity marks a signifi cant milestone for Start Campus,” said Start Campus CEO Rob Dunn. “The scale of SINES DC, coupled with our unique seawater cooling solution, creates an unprecedented o ering that sets new standards for the industry.” STULZ’s Strategic Location In August 2024, air technology systems company STULZ rang in the opening of its Center of Excellence at the Dubai Digital Park located within the Dubai Silicon Oasis Free Zone. For STULZ, the decision to invest in Dubai was made to support the data center industry across Europe, Middle East and Africa, while collaborating with consultants and planners throughout the region. Its Center of Excellence will o er advice and support for data center, commercial and industrial clients. “For large commercial and industrial brownfi eld and greenfi eld projects STULZ will be a key enabler for introduction of technologically advanced solutions that not only reduce energy consumption and carbon footprints but also o er a rapid return on investment,” says STULZ India Managing Director Suresh Balakrishnan. New power allocation has allowed Start Campus to scale its planned IT capacity in Sines, Portugal. Rendering courtesy of Start Campus The Dubai Digital Park is an initative by the Dubai Silicon Oasis Authority to create its fi rst smart city. Rendering courtesy of the Dubai Technology Entrepreneur Campus StartupBlink’s 2024 Global Startup Ecosystem Index Top 10 Countries for Startups 1. United States 2. United Kingdom 3. Israel 4. Canada 5. Singapore 6. Sweden 7. Germany 8. France 9. The Netherlands 10. SwitzerlandNext >