Samsung Electronics Co., Ltd. (005930. KS) has reportedly clinched a deal with the Biden Administration to establish chip research and manufacturing facilities in Texas.
$6.4bn White House Funding for Samsung
The tech company will receive as much as $6.4bn from the US Department of Commerce to realise this development.
Gina Raimondo, LinkedIn
Based on CNBC information, this funding is part of the capital dedicated to the overall cluster, and the scheme might exceed $40bn. The CHIPS and Science Act, which aims to revive the local manufacture of computer chips, came into effect in 2022 and justifies these funds. According to CNBC, Gina Raimondo, the US Commerce Secretary, said:
The proposed project will propel Texas into a state-of-the-art semiconductor ecosystem. 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.
This Samsung project would likely create at least 17,000 construction and over 4,500 production jobs over the next five years. Kye Hyun Kyung, the president and CEO of Samsung Electronics Device Solutions, commented:
We’re not just expanding production facilities; we’re strengthening the local semiconductor ecosystem and positioning the US as a global semiconductor manufacturing destination. To meet the expected surge in demand from US customers, for future products like AI chips, our fabs will be equipped for cutting-edge process technologies and help advance the security of the US semiconductor supply chain.
This cluster comprises two factories, and the first aims to start microchip production in 2026. This funding also applies to the extension of an existing facility in Austin, Texas, which would directly supply the US Department of Defense with microchips.
