The Biden administration has announced a significant investment in Samsung, one of the world’s largest chipmakers, to the tune of up to $6.4 billion in grants. This move is part of a larger effort to bolster domestic production of cutting-edge semiconductors, crucial components that power a wide range of devices from phones and computers to cars and weapons systems.
The funding will support Samsung’s new chip manufacturing hub in Taylor, Texas, as well as the expansion of an existing site in nearby Austin. With this financial boost, Samsung plans to build an additional manufacturing plant and upgrade a facility currently under construction in Taylor, increasing its total investment in Texas to around $45 billion.
The grants aim to establish a U.S. hub for the development and production of leading-edge semiconductors. In addition to manufacturing chips, Samsung will also construct a research and development facility in Taylor and an advanced factory for packaging the semiconductors, a crucial step before they can be used in electronic systems.
This announcement follows other recent awards made to semiconductor manufacturers as part of the CHIPS Act, a bipartisan legislation passed in 2022 to strengthen the domestic supply of semiconductors. The Commerce Department was allocated $39 billion to distribute as grants to incentivize chipmakers to build and expand plants in the United States.
The initiative seeks to reverse the decline in the U.S. share of global chip manufacturing, with only about 10 percent of the world’s chips currently being made in the United States. The grants to Samsung, Taiwan Semiconductor Manufacturing Company, and Intel are part of a larger effort to increase U.S. production of the most sophisticated semiconductors.
Samsung’s investment will also include the construction of a new advanced packaging facility and a research and development facility to study manufacturing processes. This move is seen as vital for ensuring the country’s access to cutting-edge developments in the semiconductor industry.
In addition to creating jobs and boosting the economy, the grants will also support national security efforts by supplying chips to the Defense Department. The expansion of the Austin facility will help produce chips used in critical industries such as aerospace, defense, and automotive.
Overall, the investment in Samsung marks a significant step towards establishing a state-of-the-art semiconductor ecosystem in Texas and re-establishing the United States as a leader in the production of advanced semiconductors. The grants are expected to create thousands of manufacturing and construction jobs, further boosting the economy and strengthening the domestic supply chain for semiconductors.
