Samsung Will Receive Up to $6.4 Billion in CHIPS Act Funding

Samsung Electronics will receive up to $6.4 billion in funding for semiconductor manufacturing in the U.S. as part of the CHIPS and Science Act. Samsung Semiconductor CEO Kye Hyun Kyung and Commerce Secretary Gina Raimondo celebrated the news this week at the company’s Taylor, Texas plant. The funds are earmarked for Samsung’s expansion in Central Texas to create additional manufacturing capabilities of essential chips for the AI, automotive, IoT, aerospace and other sectors. With the funds, Samsung is “strengthening the local semiconductor ecosystem and positioning the U.S. as a global semiconductor manufacturing destination,” Kyung said.

“To meet the expected surge in demand from U.S. customers, for future products like AI chips, our fabs will be equipped for cutting-edge process technologies and help bring security to the U.S. semiconductor supply chain,” Kyung added in company news announcement.

Samsung has invested $18 billion in operating two fabs at its Austin, Texas campus, an investment it describes as one of the largest in direct foreign funds in U.S. history. In 2021, the company announced a commitment of a minimum of $17 billion to construct the Texas plants.

“With addition of investment through the CHIPS and Science Act, Samsung is expected to invest more than $40 billion in the region in the coming years,” Samsung said, suggesting the infusion of tech and funds will transform “the small municipality of Taylor, Texas, into an expansive hub of leading-edge U.S. semiconductor manufacturing.”

The South Korea-based Samsung “will now build an additional manufacturing plant and upgrade a facility under construction in Taylor,” reports The New York Times, adding that “aside from manufacturing chips, Samsung will now construct a research and development facility in Taylor as well as an advanced factory for packaging them, the final step before semiconductors can be used in electronic systems.”

The Wall Street Journal points out that the Samsung funding, “contingent on due diligence from Commerce, which is overseeing $39 billion of manufacturing grants under 2022’s Chips Act,” is expected to create 17,000 construction jobs and 4,500 manufacturing jobs.

“The Chips Act is central in a revival of industrial policy under the Biden administration, using government funds to restore domestic production of a tech component seen as critical to national security and economic growth,” WSJ reports. “The U.S. accounted for more than a third of global chip production in the 1990s, a share that had dwindled to about 12 percent in 2020.”

No Comments Yet

You can be the first to comment!

Leave a comment

You must be logged in to post a comment.