The Biden administration is set to award South Korea’s Samsung more than $6 billion to expand its chip manufacturing capabilities in Taylor, Texas, according to sources familiar with the matter. The announcement, expected to be made by Commerce Department Secretary Gina Raimondo next week, aims to bolster domestic semiconductor production amid global supply chain challenges.
The subsidy will support the construction of four facilities in Taylor, including a $17 billion chipmaking plant announced in 2021. The expansion plans also encompass an additional factory, an advanced packaging facility, and a research and development center. Samsung’s total investment in the United States is projected to more than double, exceeding $44 billion as part of this deal.
Additionally, the investment includes plans for another undisclosed location, further strengthening Samsung’s presence in the U.S. semiconductor industry. This move positions Samsung to be one of the largest beneficiaries of the program, following the recent $6.6 billion award to Taiwan Semiconductor Manufacturing Company (TSMC), which agreed to expand its investment in Arizona to $65 billion and add a third factory by 2030.
The series of substantial subsidies highlights the U.S. government’s commitment to expanding domestic chip production and reducing reliance on foreign manufacturing. By attracting significant investments from global tech leaders like Samsung and TSMC, the U.S. aims to enhance its competitiveness in the global semiconductor market.
In 2022, Congress approved the Chips and Science Act, allocating $52.7 billion in research and manufacturing subsidies to boost the domestic semiconductor industry. While lawmakers also approved $75 billion in government loan authority, sources indicate that Samsung does not plan to utilize these loans.
The expansion of Samsung’s facilities is expected to create thousands of jobs and stimulate economic growth in Texas and beyond. As the U.S. seeks to lure capital that might have been invested in other regions, these developments mark a significant step in reshaping the global chipmaking landscape.
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U.S. to award Samsung up to $6.6 billion chip subsidy for expansion
cgtn.com
