Samsung To Get $6.4 Bn in Grants from the US for Chip Production To Reduce Dependence on China, Taiwan

The Biden administration has decided to award South Korea's Samsung up to $6.4 billion in grants to expand its chip production in central Texas as part of a broader effort to enhance U.S. chipmaking. This funding, provided through the 2022 Chips and Science Act, aims to boost chip production for the aerospace, defense, and auto industries, while also bolstering national security.

The grant will support the following initiatives:

• Two chip production facilities: These facilities will contribute to the production of advanced chips.
• A research center: Focused on innovation and development.
• A packaging facility: Responsible for packaging chip components.

Commerce Secretary Gina Raimondo emphasized that these investments will allow the U.S. to regain its leadership position in semiconductor design and manufacturing. Samsung is expected to invest approximately $45 billion in constructing and expanding its Texas facilities by the end of the decade. This move aims to reduce dependence on China and Taiwan for chip production.

The cluster in Taylor, Texas will include factories producing four- and two-nanometer chips. Additionally, an existing Samsung facility in Austin, Texas, will be expanded. The project is projected to create at least 17,000 construction jobs and more than 4,500 manufacturing jobs. By supporting advanced technology domestically, the U.S. aims to enhance its national security in the face of global competition.

Texas has become a hub for U.S. chip manufacturing due to a combination of factors such as low taxes, new subsidies, and geopolitical tensions between China and Taiwan.

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