The Texas economy is one of the most robust in the world. Wildly profitable companies and ingenious entrepreneurs call this state home, and what happens here influences businesses around the nation. Here’s a slice of the profits, losses, big deals, and backroom decisions happening across
House of the Rising ’Sung
Samsung announced this week that it will pump about $4 billion into its Austin manufacturing plant “to boost output of processors increasingly used in smartphones and tablet computers,” Businessweek reports. The company says it will finish converting the factory and begin mass production by late next year.
Samsung, the largest memory chipmaker in the world and the sole manufacturer of iPhone and iPad processors, is shifting away from memory in favor of the expanding market for “mobile application-processors,” analysts told Businessweek.
The Bottom Line: The investment—“the largest in size to be made by a foreign company in Texas”—may be used to ramp up production of mobile chips for Apple, Samsung’s largest client.
You’ve Got Fail
Dallas Morning News publisher James Moroney is on the frontlines of a legal battle between newspapers and junk mail purveyors—a fight that lost some traction this week. On Thursday the Postal Regulatory Commission “approved a plan that gives one of the nation’s largest direct marketers a postage discount on advertising flyers,” which could net as much as $15 million in additional revenue for the U.S. Postal Service, the Associated Press reports.
The commission’s deal with