South Korean electronics giant Samsung is the latest chipmaker to receive billions from the U.S. CHIPS and Science Act, the Biden administration said Monday.
Samsung will get up to $6.4 billion in direct funding under the act, which is meant to bring advanced chipmaking stateside. The company plans to claim an investment tax credit from the Treasury Department to cover up to 25% of qualified capital expenditures, the Department of Commerce said. The funding will support the more than $40 billion investment Samsung will make in building a chipmaking hub in Taylor, Texas, and expand its facility in Austin,. The electronics giant recently upped its investment into the Texas facilities from $17 billion to $44 billion, The Wall Street Journal reported.
The Texas hub will focus on developing and producing advanced chips, research and development, and an advanced packing facility. With Samsung’s investment, the U.S. is on track to produce about 20% of the world’s advanced logic chips by the end of the decade, the Commerce Department said.
“We’re not just expanding production facilities; we’re strengthening the local semiconductor ecosystem and positioning the U.S. as a global semiconductor manufacturing destination,” Kye Hyun Kyung, president and CEO of the Device Solutions Division at Samsung, said in a statement. “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 advance the security of the U.S. semiconductor supply chain.”
This is a developing story and will be updated.