Samsung Secures $6.4 Billion in Direct Funding from the US to Boost Its Manufacturing Capabilities in Texas
Samsung is set to receive $6.4 billion in direct funding from the United States through the CHIPS and Science Act to enhance its manufacturing capabilities in the US. This announcement was made by US Secretary of Commerce, Gina Raimondo, during a visit to Samsung’s new semiconductor manufacturing facility in Taylor, Texas. The Biden administration is emphasizing the importance of increasing manufacturing in the US to prevent future disruptions.
The pandemic highlighted the risks of relying on East Asia for essential hardware like chips, particularly impacting industries such as phones, computers, and cars. In attendance at the event was Samsung Semiconductor CEO Kye Hyun Kyung who expressed that this investment will support the company’s expansion in Central Texas, enabling the production of chips for critical industries such as automotive, consumer technology, IoT, aerospace and more.
This investment signifies a move to strengthen the local semiconductor ecosystem and position the US as a global semiconductor manufacturing destination. Samsung has been operating in Texas for nearly three decades and over the years has invested $18 billion in the region with plans to invest even more with CHIPS and Science Act funding. With this additional investment, Samsung expects to contribute over $40 billion to the area in coming years transforming it into a central hub for cutting-edge US semiconductor manufacturing.
This initiative aligns with a broader movement to diversify chip manufacturing in the US and Europe due to recent conflicts and challenges in global supply chains. Enhancing semiconductor manufacturing capabilities domestically appears to be a strategic decision for both countries that solidifies Samsung’s commitment to this region and its role in advancing semiconductor technologies.
