In a significant move to bolster U.S. chip manufacturing, the Biden administration has announced a groundbreaking $6.4 billion grant for South Korea’s tech giant Samsung. This funding, provided through the 2022 Chips and Science Act, aims to support Samsung’s expansion of chip production facilities in central Texas.
The Department of Commerce revealed that the grant will facilitate the establishment of two chip production facilities, a research center, and a packaging facility in Taylor, Texas. Additionally, the funding will enable Samsung to enhance its semiconductor facility in Austin, Texas, ultimately boosting chip output for critical industries such as aerospace, defense, and automotive sectors while enhancing national security.
Commerce Department Secretary Gina Raimondo emphasized that these investments will position the U.S. as a global leader not only in semiconductor design but also in manufacturing, advanced packaging, and research and development. This strategic move is geared towards reducing reliance on chip imports from countries like China and Taiwan, as the U.S. share of global semiconductor manufacturing capacity has significantly declined over the years.
Samsung anticipates commencing production in 2026, with plans to produce 4-nanometer chips initially and expand to 2-nanometer chips in the future
Samsung Electronics Co-CEO Kyung Kye Hyun expressed confidence in meeting the growing demand from U.S. customers for future products like AI chips. The company plans to equip its fabs with cutting-edge process technologies to ensure security in the U.S. semiconductor supply chain. Samsung anticipates commencing production in 2026, with plans to produce 4-nanometer chips initially and expand to 2-nanometer chips in the future.
The announcement positions Samsung as the third-largest recipient of Chips Act funding, underscoring the Biden administration’s commitment to strengthening the domestic chip making industry. The goal is to address vulnerabilities in the semiconductor supply chain, enhance national security, and create new job opportunities for Americans, particularly in Texas.
Lawmakers have emphasized the importance of investing in leading-edge semiconductor manufacturing to secure the supply chain against potential disruptions. By incentivizing companies like Samsung to expand their manufacturing capabilities in the U.S., the administration aims to enhance global competitiveness and reduce dependence on foreign chip manufacturers.
Samsung’s planned investment of approximately $45 billion in building and expanding its Texas facilities over the next decade signifies a significant commitment to U.S.-based manufacturing. Industry stakeholders, including the Semiconductor Industry Association (SIA), have commended Samsung for its bold investment and the Commerce Department for facilitating the implementation of the CHIPS Act’s incentives and R&D programs.
This grant to Samsung follows similar substantial awards to other industry leaders like Intel and Taiwan’s TSMC, as part of the administration’s broader strategy to revitalize the American semiconductor manufacturing sector. With these investments, the U.S. aims to reclaim its position as a global leader in chip manufacturing, safeguarding critical supply chains and driving innovation in key industries.
The Biden administration’s grant to Samsung marks a significant milestone in the efforts to strengthen U.S. chip manufacturing capabilities and enhance national security. By partnering with industry leaders and incentivizing domestic production, the administration is paving the way for a more resilient and competitive semiconductor industry in the United States.
