The Biden administration has reached an agreement to provide up to $6.4 billion in direct funding for Samsung Electronics to develop a computer chip manufacturing and research cluster in Texas. The funding announced Monday by the Commerce Department is part of a total investment in the cluster that, with private money, is expected to exceed $40 billion. The government support comes from the CHIPS and Science Act, which President Joe Biden signed into law in 2022 with the goal of reviving the production of advanced computer chips domestically.
Quick Read
- Significant Funding for Samsung: The Biden administration has committed up to $6.4 billion in direct funding to support Samsung Electronics in developing a computer chip manufacturing and research cluster in Taylor, Texas. This initiative is backed by the CHIPS and Science Act of 2022, aimed at boosting domestic production of advanced computer chips.
- Total Investment and Project Goals: Including private funding, the total investment for the Texas cluster could surpass $40 billion. The project is expected to solidify Texas as a leading semiconductor hub and help the U.S. achieve its goal of producing 20% of the world’s leading-edge chips by the end of the decade.
- Job Creation and Facility Details: The Samsung project is projected to create at least 17,000 construction jobs and over 4,500 manufacturing positions. The cluster will feature two new factories for producing ultra-small four- and two-nanometer chips, a dedicated research and development facility, and a packaging facility.
- Operational Timelines and Expansion: The first new factory is slated to begin operations in 2026, with the second factory following in 2027. The initiative also includes the expansion of an existing Samsung facility in Austin, Texas, which will directly produce chips for the U.S. Defense Department, highlighting the national security importance of advanced technology.
- Additional Financial Support: Beyond the $6.4 billion funding, Samsung plans to utilize an investment tax credit from the U.S. Treasury Department, reflecting broader governmental support for enhancing U.S. semiconductor manufacturing capabilities.
The Associated Press has the story:
Biden admin to provide $6.4B to Samsung for making computer chips in Texas
Newslooks- WASHINGTON (AP) —
The Biden administration has reached an agreement to provide up to $6.4 billion in direct funding for Samsung Electronics to develop a computer chip manufacturing and research cluster in Texas.
The funding announced Monday by the Commerce Department is part of a total investment in the cluster that, with private money, is expected to exceed $40 billion. The government support comes from the CHIPS and Science Act, which President Joe Biden signed into law in 2022 with the goal of reviving the production of advanced computer chips domestically.
“The proposed project will propel Texas into a state of the art semiconductor ecosystem,” Commerce Secretary Gina Raimondo said on a call with reporters. “It puts us on track to hit our goal of producing 20% of the world’s leading edge chips in the United States by the end of the decade.”
Raimondo said she expects the project will create at least 17,000 construction jobs and more than 4,500 manufacturing jobs.
Samsung’s cluster in Taylor, Texas, would include two factories that would make four- and two-nanometer chips. Also, there would be a factory dedicated to research and development, as well as a facility for the packaging that surrounds chip components.
The first factory is expected to be operational in 2026, with the second being operational in 2027, according to the government.
The funding also would expand an existing Samsung facility in Austin, Texas.
Lael Brainard, director of the White House National Economic Council, said Samsung will be able to manufacture chips in Austin directly for the Defense Department as a result. Access to advanced technology has become a major national security concern amid competition between the U.S. and China.
In addition to the $6.4 billion, Samsung has indicated it also will claim an investment tax credit from the U.S. Treasury Department.
The government has previously announced terms to support other chipmakers including Intel and Taiwan Semiconductor Manufacturing Co. in projects spread across the country.
