President Joe Biden announced on Monday that the federal government has agreed to provide Samsung Electronics with $6.4 billion to build computer chip manufacturing facilities in central Texas. The new subsidy, authorized under Biden’s 2022 CHIPS and Science Act, is set to boost domestic production and further the Biden administration’s goal of ending reliance on foreign semiconductor suppliers.
The federal grant for the facilities near Austin, Texas, will be added to Samsung’s own private investment. Samsung initially announced the plan to set up a manufacturing plant in the city of Taylor, Texas, in 2021, but the plan has since expanded to include expanding an existing factory in Austin. With the influx of government funding, the total investment in the project is now up to over $40 billion.
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According to a statement from President Biden announcing the deal, the partnership with Samsung will unleash the company’s substantial investment and “cement central Texas’s role as a state-of-the-art semiconductor ecosystem, creating at least 21,500 jobs and leveraging up to $40 million in CHIPS funding to train and develop the local workforce.”
“These facilities will support the production of some of the most powerful chips in the world, which are essential to advanced technologies like artificial intelligence and will bolster U.S. national security,” Biden continued.
As part of the deal, Samsung will also build an advanced packaging facility equipped to assemble electronic components for cars, planes, phones, and other devices.
“The proposed project will propel Texas into a state-of-the-art semiconductor ecosystem,” Commerce Secretary Gina Raimondo said on a call with reporters. “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.”
The Samsung deal comes just one week after the US government made a $6.6 billion investment in Taiwan Semiconductor Manufacturing Co. and $8.5 billion in Intel to expand their respective operations in Arizona.
Since the passage of the CHIPS and Science Act, $23 billion of the allotted $39 billion has been spent to entice foreign manufacturers to build semiconductor facilities in the US.
Connor Walcott is a staff writer for Valuetainment.com. Follow Connor on X and look for him on VT’s “The Unusual Suspects.”
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