Tech
Samsung To Receive $6.4 Billion In Grants For Its Texas Chip Production Complex
(CTN News) – The Biden administration will award up to $6.4 billion in grants to Samsung for the expansion of its chip production facility in central Texas.
This is part of a larger effort to expand chip production in the United States, the Department of Commerce announced on Monday.
Administration Samsung officials told reporters that the funding, which is from the 2022 Chips and Science Act, is expected to boost chip production for aerospace, defense, and automotive industries as well as enhance national security.
Lael Brainard, Samsung National Economic Adviser to the White House, said that the return of leading-edge chip manufacturing to America is a major development in the semiconductor field.
According to Reuters, the announcement was expected to be made at the end of the week. According to Commerce Secretary Gina Raimondo on the conference call, the subsidy will be used to support the development of two chip production facilities, a research center and a packaging facility.
Moreover, Samsung’s CEO said that as a result of Raimondo’s announcement, Samsung has also planned to increase its semiconductor production capacity in Austin, Texas in response to Raimondo’s news.
“(With these investments), the United States will be able to lead the world once again in many areas, a field in which we currently lead the world in semiconductor design, which is where we already lead the world, but also in manufacturing, advanced packaging, research, and development,” Raimondo said in a statement.
According to senior officials within Samsung’s administration, the company plans on investing about $45 billion between now and the end of this decade in the construction and expansion of its Texas facilities.
With the U.S. government investing in chip production, the country is working towards reducing its dependence on China and Taiwan as a result of the U.S. investment.
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