Samsung Electronics to Secure Massive $6.4B in CHIPS and Science Act Direct Funding

Samsung will receive $6.4 billion in direct support under the United States CHIPS and Science Act to assist it grow its manufacturing capacity in the United States. US Secretary of Commerce Gina Raimondo made the announcement at Samsung’s new semiconductor production site in Taylor, Texas.

Samsung Electronics to Secure Massive $6.4B in CHIPS and Science Act Direct Funding

While Samsung is a foreign corporation, the Biden administration is more concerned with bringing manufacturing to the United States to help prevent future disruptions. During the epidemic, it became evident that relying on East Asia for chips was bad for the US and Europe because they couldn’t receive the necessary hardware for so many items such as phones, computers, and cars.

Samsung Semiconductor CEO Kye Hyun Kyung attended the occasion and stated that the investment will help the company expand in Central Texas and allow it to develop semiconductors for critical industries such as automotive, consumer technology, IoT, aerospace, and more.

Commenting, Kyung said:

“We’re not simply adding manufacturing facilities; we’re also boosting the local semiconductor ecosystem and establishing the United States as a worldwide semiconductor manufacturing hub. To meet the predicted spike in demand from US customers for future products such as AI chips, our fabs will be equipped with cutting-edge process technologies, bringing security to the US semiconductor supply chain.”

Samsung Electronics to Secure Massive $6.4B in CHIPS and Science Act Direct Funding

Samsung has been present in Texas for about 30 years. Since 1996, the business has invested $18 billion in two fabs on its Austin, Texas, site. With the CHIPS and Science Act initiative, Samsung is slated to invest more than $40 billion in the region over the next few years, transforming it into an “expansive hub of leading-edge US semiconductor manufacturing.”

Both the United States and Europe are diversifying their chip manufacturing industries. With several wars arising recently across the world, it is perhaps prudent for the United States and Europe to establish their own semiconductor production capacity.

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