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Samsung to receive $6.4 billion from the CHIPS and Science Act

Samsung factory in Texas

Samsung will receive $6.4 billion in direct funding as part of the United States CHIPS and Science Act to help it expand its manufacturing capabilities in the US. The announcement was made by the US Secretary of Commerce, Gina Raimondo at Samsung’s new semiconductor manufacturing facility in Taylor, Texas.

While Samsung may be a foreign company, the Biden administration is more concerned about bringing manufacturing to the US to help avoid future disruptions. It was made clear during the pandemic that the reliance on East Asia for chips is not good for the US and Europe when they can’t get the essential hardware they need for so many products including phones, computers, and cars.

Also at the event was Samsung Semiconductor CEO Kye Hyun Kyung who said that the investment will help the company expand in Central Texas and allow it to produce chips for essential industries like automotive, consumer technology, IoT, aerospace, and more.

Commenting, Kyung 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. 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.”

Samsung has been present in Texas for nearly 30 years. Since 1996, the company has invested $18 billion operating two fabs at its Austin, Texas, campus. With the CHIPS and Science Act investment, Samsung is now expected to invest more than $40 billion in the region over the coming years, which will turn it into an “expansive hub of leading-edge US semiconductor manufacturing.”

The move to diversify chip manufacturing is taking place in both the US and Europe. With many conflicts springing up recently around the world, it is probably prudent for the US and Europe to have their own semiconductor manufacturing capabilities.

Source: Samsung

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