Samsung Secures $6 Billion in US Grants for Texas Chip Manufacturing Facility

In addition to restricting China’s access to chip manufacturing facilities, the US is also making efforts to move chip manufacturing back to the US. In recent decades, chip manufacturing has largely shifted to Asia. To make this happen, the Biden administration is subsidizing chip-making giants like Intel, TSMC and Samsung to build factories in the US.

Samsung has secured more than $6 billion in US government grants for a Texas chip manufacturing facility

As for Samsung, the company already has a chip manufacturing facility in Austin, Texas. In parallel, the giant is also working on another plant in Taylor, Texas. As Bloomberg first reported, the company has secured more than $6 billion in US government grants for this development as part of the CHIPS ACT.

It is important to mention that Samsung has been working on a Texas chip manufacturing facility for quite some time. As noted by Sammobile, they announced a $17 billion investment in the Taylor plant in 2021. That number has now risen to $44 billion, according to people familiar with the development. Samsung is now reportedly preparing to unveil that $44 billion investment for a new chip manufacturing facility in Taylor.

TSMC and Intel are also focusing on chip manufacturing in the US

The CHIPS ACT provides $39 billion in grants and $75 billion in loans and guarantees. This has fueled investments in semiconductor manufacturing well north of $200 billion. Not to mention that companies like TSMC and Intel have also picked up grants from the Biden administration to build state-of-the-art chip manufacturing facilities in the US. The report notes that the two companies have secured $20 billion and $11.6 billion in grants, respectively.

It’s unclear when Samsung’s new facility in Taylor will begin mass production. It was reportedly delayed to 2025 last December. A report by Businesskorea indicated that mass production was initially expected to begin in 2024. The report also speculated that the delay could be related to various issues related to US government subsidies and permits or licenses.

TSMC’s production in Arizona is also being delayed for the same reason. A more recent report indicated that it has scheduled three of its chip factories to begin mass production in 2025, with a fourth scheduled for 2028.

2024-04-13 10:11:27
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