Texas ranks third in "insourced jobs," which are the number of U.S. jobs created by foreign companies.

The U.S. subsidiaries of companies that have headquarters overseas support 428,000 jobs in Texas, according to the Organization for International Investment.

"The media has focused on one facet of globalization, which is outsourcing," says Todd Malan, executive director of the Washington D.C.-based business group, which represents U.S. subsidiaries of foreign companies.

"But the flipside is that insourcing supports thousands of jobs in the United States every year," Malan says. "The debate about outsourcing is essentially about globalization."

Malan says the Samsung Austin Semiconductor LLP plant is an excellent example of "insourcing." The Korean company plans to add 300 jobs after the completion of a $500 million advanced equipment and plant expansion. The Austin plant, owned by Samsung Electronics Co. Ltd., employs 950 people in Austin. The new high tech jobs are expected to pay an average of $53,000 per year, according to the Organization for International Investment.

California ranks No. 1 in terms of "insourced" jobs, followed by New York. After Texas, Illinois, Florida, New Jersey, Pennsylvania, Michigan, Georgia and Ohio complete the top 10.

Nationally, U.S. subsidiaries of foreign companies employ 6.4 million Americans. Furthermore, they compensate those employees 16.5 percent more than U.S. companies.

© 2004 American City Business Journals Inc.