In a strategic move to fortify domestic chipmaking capabilities, the Biden administration has pledged up to $6.4 billion in grants to South Korea’s tech giant, Samsung Electronics. This substantial investment aims to propel the expansion of Samsung’s chip production facilities in central Texas, serving as a pivotal component of a broader initiative to bolster the United States semiconductor industry.
As detailed by the Department of Commerce on Monday, the funding, allocated under the 2022 Chips and Science Act, will facilitate the establishment of two cutting-edge chip production facilities, alongside a dedicated research center and packaging facility in Taylor, Texas. Additionally, the infusion of funds will empower Samsung to enhance its existing semiconductor facility in Austin, Texas. This expansion is poised to cater to the burgeoning demands of US customers and bolster chip output across critical sectors such as aerospace, defense, and automotive industries, thereby strengthening national security.
Commerce Department Secretary Gina Raimondo emphasized that these investments are pivotal in reinstating US leadership in semiconductor manufacturing, and advancing capabilities in design, production, and research and development. The move aligns with the administration’s broader agenda to mitigate reliance on overseas chip production, particularly in regions like China and Taiwan.
Samsung Electronics Co-CEO Kyung Kye Hyun reiterated the company’s commitment to meeting the anticipated surge in demand for advanced products like AI chips. Samsung’s facilities are poised to be equipped with state-of-the-art process technologies, enhancing the security of the US semiconductor supply chain.
Anticipated to commence production in 2026, Samsung’s venture into chip manufacturing in Texas represents a significant stride toward revitalizing domestic semiconductor capabilities. Analysts project the company’s initial focus on producing 4-nanometer chips, with potential expansion into 2-nanometer chips in the future.
The Biden administration’s grant to Samsung marks a crucial step in its efforts to strengthen the US semiconductor industry. Intending to reduce dependence on foreign supply chains, particularly in Taiwan, the initiative seeks to address vulnerabilities in the global semiconductor landscape.
Republican U.S. Senator from Texas, John Cornyn, emphasized the significance of investing in cutting-edge semiconductor manufacturing to enhance national security and competitiveness while creating employment opportunities in Texas.
Samsung’s investment in Texas is expected to amount to approximately $45 billion by the decade’s end, signaling a significant commitment to bolstering American chip production. The Semiconductor Industry Association (SIA) applauded Samsung’s bold investment and commended the US Commerce Department for advancing the manufacturing incentives and research and development programs outlined in the Chips Act.
In tandem with Intel and TSMC’s recent grant awards, Samsung’s foray into US-based chip manufacturing underscores a concerted effort to strengthen the nation’s semiconductor capabilities, ensuring a secure and resilient supply chain for critical technologies.
