The Biden administration announced plans to award Samsung up to $6.4 billion in grants to bolster chip production in central Texas as part of a broader initiative to strengthen U.S. semiconductor manufacturing.
These funds, allocated under the 2022 Chips and Science Act, will support the establishment of two chip production facilities, a research center, and a packaging facility in Taylor, Texas.
Samsung will expand its semiconductor facility in Austin, Texas. Commerce Department Secretary Gina Raimondo emphasized that these investments will not only enhance chip output for industries like aerospace, defense, and automotive but also bolster national security.
Samsung Electronics Co-CEO Kyung Kye Hyun expressed Samsung’s commitment to meeting the increasing demand from U.S. customers for future products such as AI chips.
He highlighted that Samsung’s fabs will be equipped with cutting-edge process technologies to ensure the security of the U.S. semiconductor supply chain.
Production is slated to commence in 2026, with an initial focus on 4-nanometer chips, potentially expanding to 2-nanometer chips over time.
This announcement marks another step by the Biden administration to fortify the chipmaking industry in the United States.
With the goal of reducing reliance on foreign chip manufacturers, particularly in China and Taiwan, the administration aims to address the decline in the U.S. share of global semiconductor manufacturing capacity.
Lawmakers have raised concerns about dependency on chips manufactured in Taiwan by TSMC, citing geopolitical risks.
Republican U.S. Senator John Cornyn, a cosponsor of the original legislation, applauded Samsung’s investment in U.S.-based manufacturing.
Samsung plans to invest approximately $45 billion in building and expanding its Texas facilities by the end of the decade.
The Semiconductor Industry Association (SIA) commended Samsung’s bold investment and praised the Commerce Department’s progress in implementing the CHIPS Act’s manufacturing incentives and research programs.
In recent months, similar grants have been awarded to Intel and TSMC to bolster American chip production.
