Samsung Gains $4.6 Billion in New US Chip Funding

Samsung Gains $4.6 Billion in New US Chip Funding

The US Department of Commerce plans to provide Samsung with up to $4.6 billion to expand its semiconductor manufacturing capabilities. The aim is to reduce the dependence on foreign-made chips.

As part of this initiative, President Joe Biden announced that Samsung is expected to invest over $40 billion across its facilities in Texas in the coming years. Additionally, Samsung will benefit from up to $40 million in CHIPS and Science Act funding to train and develop the local workforce. The project will create 17,000 construction jobs and over 4,500 manufacturing jobs in the next five years.

The proposed semiconductor ecosystem in Texas will comprise two logic fabrications, an R&D center, an advanced packaging facility, and an expansion of Samsung's existing facility. The chips produced in the new setup will be used in communication, automotive, and defense industries, as well as high-performance computing and AI.

US Secretary of Commerce Gina Raimondo emphasized that the chips Samsung will manufacture in the country are vital components of the most advanced technologies, from AI to high-performance computing and 5G communications. The funding for Samsung is the third-largest from the CHIPS and Science Act, following TSMC's $6.6 billion and Intel's $8.5 billion.