US government to give Samsung up to $6.4 billion for Texas, USA fabs, R&D center

The US government is awarding Samsung up to $6.4 billion in grants to expand its chip production facilities in Texas, USA, to boost US-based semiconductor chipmaking.

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The new $6.4 billion in funding is being fed through the 2002 CHIPS and Science Act, which will assist in the first two chip production facilities, an advanced packaging facility, and a research and development center planned by Samsung. These new facilities will be located in Taylor, Texas, USA.

These new funds will also help Samsung expand its semiconductor facility in Austin, Texas while boosting chip output for aerospace, defense, and auto industries while bolstering national security, administration officials told reporters and reported by Reuters.

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Samsung Electronics co-CEO Kyung Kye Hyun, said: "To meet the expected surge in demand from U.S. customers, for future products like AI chips, our fabs will be equipped for cutting-edge process technologies and help bring security to the U.S. semiconductor supply chain".

Commerce Department Secretary Gina Raimondo said: "(These investments) will allow the U.S. to once again lead the world, not just in semiconductor design, which is where we do now lead, but also in manufacturing, advanced packaging, and research and development".

John Cornyn, a Republican U.S. senator from Texas who cosponsored the original legislation, said: "By investing in leading-edge semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans".