Samsung To Receive $6.4 Billion Under CHIPS Act to Build $40 Billion Fab in Texas

Samsung To Receive $6.4 Billion Under CHIPS Act to Build $40 Billion Fab in Texas

Samsung Electronics this week awarded Up to $6.4 billion from the US government under CHIPS and the SCIENCE Act to build its new fab complex in Taylor, Texas. This is the third major award under the act in the last month, with all three leading fabs. Intel, TSMCAnd now Samsung – receiving multi-billion dollar funding packages under its domestic chip production program. In total, the final price of Samsung's new fab complex is expected to reach $40 billion by the end of this decade.

Samsung's CHIPS Act funding was announced during a celebration event attended by U.S. Commerce Secretary Gina Raimondo and Samsung Semiconductor Chief Executive Kye Hyun Kyung. During the event, Keung outlined the strategic goals of the expansion, stressing that the additional funding will not only increase productivity but also strengthen the entire local semiconductor ecosystem. Samsung plans to equip its fab near Taylor, Texas with the latest wafer fab tools to produce the latest chips. The Financial Times reports that Samsung aims to produce semiconductors on its 2nm-class process technology starting in 2026, although this is currently unofficial information.

“I am pleased to announce an initial agreement between Samsung and the Department of Commerce to bring Samsung's advanced semiconductor manufacturing and research and development to Texas.” said US President Joe Biden said in a statement. “This announcement will mark the beginning of more than $40 billion in investments by Samsung, and will cement Central Texas' role as a cutting-edge semiconductor ecosystem, creating at least 21,500 jobs. CHIPS will benefit up to $40 million in funding to train and develop local people. These facilities will support the development of some of the world's most powerful chips, essential for advanced technologies such as artificial intelligence and the U.S. It will strengthen national security.”

Samsung has been a major contributor to the Texas economy for decades, beginning chip manufacturing in the U.S. in 1996. With previous investments totaling $18 billion in its Austin operations, Samsung's additional investment in Taylors of at least $17 billion underscores its role. One of the largest foreign direct investors in US history. The total projected investment in the new fab exceeds $40 billion, making it the largest greenfield project in the country and transforming Taylor into a major semiconductor manufacturing hub.

The CEO highlighted the substantial economic impact of Samsung's operations, which saw regional economic output nearly double from $13.6 billion to $26.8 billion between 2022 and 2023. Overall development of the community.

“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,” Kyung said. To accommodate growth, for future products such as AI chips, our fabs will be equipped with the latest process technologies and help bring security to the U.S. semiconductor supply chain.”

Samsung is also committed to environmental sustainability and workforce development. The company plans to operate using 100% clean energy and incorporate advanced water management technologies. Additionally, it is investing in education and training programs to develop a new generation of semiconductor professionals. These initiatives include partnerships with educational institutions and programs designed for military veterans.

In his remarks, Keung thanked President Biden, Secretary Raimondo, and other government and community supporters for their continued support. This collaborative effort between Samsung and various levels of government, as well as the local community, is critical to advancing the U.S. semiconductor industry and ensuring its global competitiveness.

“Today's announcement will help Samsung bring more semiconductor production, innovation and jobs to US shores, strengthening America's economy, competitiveness, and critical chip supply chains.” Statement Reads Semiconductor Industry Assoc. “We applaud Samsung for boldly investing in U.S.-based manufacturing and applaud the U.S. Department of Commerce for making significant progress in implementing the CHIPS Act's manufacturing incentives and R&D programs. We look forward to continuing to work with government and industry leaders to help revitalize US chip manufacturing and research for many years to come.”

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