According to Reuters, Samsung is set to receive a $6.6 billion subsidy for expanding its chip plant in Texas, USA. This move is part of the Biden administration’s efforts to enhance chip production in the country.
The subsidy will be used for the construction of four new facilities at the Texas plant, which include a $17 billion chipmaking plant, another factory, an advanced packaging facility, and an R&D center.
Office of Samsung in Austin, Texas
Commerce Department Secretary Gina Raimondo is expected to officially announce the expanded partnership next week. The subsidy will also involve an investment in an undisclosed location. With this agreement, Samsung will increase its US investment to more than $44 billion.
This investment is in line with TSMC, which was granted $6.6 billion to expand its investment by $25 billion to $65 billion and add a third plant in Arizona by 2030. Intel also received $8.5 billion to expand its chip-making operations.
Samsung plant in construction in Taylor, Texas
The announcement marks the end of a series of significant Chips and Science grants as the US aims to regain its position in semiconductor manufacturing. An analysis cited by Reuters showed that while the US produced 37% of all semiconductors in 1990, its share had dropped to 12% by 2020.
