The Biden administration is set to announce a substantial subsidy of up to $6.6 billion to South Korea's Samsung, aiming to expand its semiconductor production in Taylor, Texas. This move is part of a broader initiative to boost domestic chip manufacturing and reduce reliance on foreign sources.
Commerce Department Secretary Gina Raimondo will unveil the details next week, allocating funds toward the construction of four new facilities. These include a $17 billion chipmaking plant announced by Samsung in 2021, an additional factory, an advanced packaging facility, and a research and development center.
In addition to the expansion in Texas, the subsidy will support investments in another undisclosed location, pushing Samsung's total U.S. investment to over $44 billion. This partnership marks Samsung as the third-largest recipient of the Chips and Science grants, trailing only behind Taiwan's TSMC, which recently secured a $6.6 billion subsidy and pledged to expand its investment to $65 billion by 2030.
This announcement is the latest in a series of significant grants aimed at enhancing the U.S.'s semiconductor industry. The Chips and Science Act of 2022 allocated $52.7 billion in research and manufacturing subsidies, complemented by $75 billion in government loan authority. Notably, Samsung has indicated it will utilize the subsidies without tapping into the loan options.
As the global demand for advanced chips continues to rise, these investments are crucial for maintaining the U.S.'s competitive edge in technology and manufacturing. By encouraging major players like Samsung to expand their presence in the country, the administration seeks to secure a robust and resilient semiconductor supply chain.
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U.S. to award Samsung up to $6.6 billion chip subsidy for expansion
cgtn.com
