The Biden administration is set to award South Korea's Samsung a substantial $6.4 billion in grants aimed at expanding semiconductor production in Texas. This investment is a key component of the 2022 CHIPS and Science Act, which seeks to strengthen the U.S. chipmaking industry.
Samsung plans to utilize the funds to develop two new chip production facilities, a research center, and a packaging facility in Taylor, Texas. Additionally, the grants will facilitate the expansion of Samsung's existing semiconductor facility in Austin, enhancing chip output for critical sectors such as aerospace, defense, and automotive industries. Commerce Department Secretary Gina Raimondo highlighted that these investments will not only boost manufacturing and advanced packaging but also reinforce national security.
Samsung Electronics Co-CEO Kyung Kye Hyun expressed optimism about meeting the rising demand for AI chips and other future technologies, emphasizing the role of cutting-edge process technologies in securing the U.S. semiconductor supply chain. Production is expected to commence in 2026, with plans to produce 4-nanometer chips initially, eventually advancing to 2-nanometer chips.
This funding makes Samsung the third-largest recipient under the CHIPS Act, following Intel's $8.5 billion award and TSMC's $6.6 billion grant earlier this year. The U.S. share of global semiconductor manufacturing has declined from 37% in 1990 to 12% in 2020, underscoring the significance of these investments. Senator John Cornyn, a Texas Republican, praised the initiative for securing the supply chain, enhancing national security, and creating jobs in Texas.
With Samsung's anticipated $45 billion investment in Texas facilities by the end of the decade, the collaboration marks a significant stride towards revitalizing America's position in the global semiconductor landscape.
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U.S. awards Samsung $6.4 billion in grants to boost Texas chip output
cgtn.com
