Samsung Receives $6.4 Billion in U.S. Funding to Expand Chip Production in Texas

The U.S. Department of Commerce has announced a $6.4 billion grant to Samsung Electronics to expand its semiconductor manufacturing facilities in central Texas. The funding, allocated under the CHIPS and Science Act , will support the construction of two new chip production facilities, a research and development center, and an advanced packaging facility in Taylor, Texas. It will also enable Samsung to expand its existing semiconductor factory in Austin.

This investment is part of a broader national effort to strengthen the U.S. semiconductor industry and significantly boost reliance on overseas manufacturing. It aims to help the United States regain leadership in semiconductor manufacturing, advanced packaging, and research and development. Samsung plans to begin production at the new facilities in 2026, initially focusing on 4-nanometer chips before transitioning to 2-nanometer process technologies.

Why this matters: The expansion of Samsung's semiconductor production in Texas is expected to create at least 21,500 jobs and contribute significantly to the local economy. It will also help secure the U.S. semiconductor supply chain, boost national security, and enhance the country's global competitiveness in the tech industry.

The funding for Samsung is the third-largest award under the CHIPS Act, following grants to Intel and TSMC for their U.S. chip manufacturing expansions. It is part of the Biden administration's push to revitalize domestic chip production and reduce reliance on China and Taiwan for critical semiconductor components.

During the announcement event at Samsung's new facility in Taylor, Texas, U.S. Secretary of Commerce Gina Raimondo emphasized the importance of this initiative in strengthening the U.S. semiconductor industry and supporting key sectors such as aerospace, defense, and automotive. "This historic investment will not only expand Samsung's semiconductor facility in Austin but also increase chip output crucial for various industries," Raimondo stated.

Samsung's investment in Texas is expected to transform the region into a major hub for semiconductor manufacturing. The company plans to invest over $40 billion in building and expanding its facilities in the state through the end of the decade, solidifying Texas as a key player in the global semiconductor industry.

Key Takeaways

• U.S. grants $6.4B to Samsung to expand chip facilities in Texas
• Funding aims to boost U.S. semiconductor manufacturing and reduce reliance on overseas
• Expansion to create at least 21,500 jobs and boost local economy
• Part of Biden administration's push to revitalize domestic chip production
• Samsung to invest over $40B to build and expand facilities in Texas