Samsung Secures $6.4 Billion Grant Through CHIPS Act for Construction of $40 Billion Fab in Texas

$40 Billion Fab, $6.4 Billion, build, CHIPS Act, Samsung, Texas

Samsung Electronics recently received up to $6.4 billion in funding from the U.S. government under the CHIPS and Science Act. This marks the third major award under the act in the past month, with Intel and TSMC also receiving multi-billion dollar funding packages. The funding will go towards building Samsung’s new fab complex in Taylor, Texas, with an expected total cost of $40 billion.

The announcement of Samsung’s CHIPS Act funding was made during a celebratory event attended by U.S. Secretary of Commerce Gina Raimondo and Samsung Semiconductor CEO Kye Hyun Kyung. Kyung highlighted the strategic goals of the expansion, which includes increasing production capacity and strengthening the local semiconductor ecosystem. The fab near Taylor, Texas, will be equipped with the latest wafer fab tools to produce advanced chips, with plans to start producing chips on a 2nm-class process technology by 2026.

U.S. President Joe Biden expressed his support for the agreement between Samsung and the Department of Commerce, stating that it will bring advanced semiconductor manufacturing and research and development to Texas. The investment from Samsung is expected to reach over $40 billion and will create at least 21,500 jobs in the area. Biden also emphasized the importance of semiconductor production for advanced technologies like artificial intelligence and national security.

Samsung has been a significant contributor to the Texas economy for many years, starting chip manufacturing in the U.S. in 1996. The company has already invested $18 billion in its Austin operations, and the additional investment of at least $17 billion in Taylor solidifies its position as one of the largest foreign direct investors in U.S. history. The total investment in the new fab is expected to exceed $40 billion, making it one of the largest for a greenfield project in the nation and turning Taylor into a prominent hub for semiconductor manufacturing.

The CEO of Samsung Semiconductor emphasized the economic impact of the company’s operations, noting a substantial increase in regional economic output between 2022 and 2023. The ongoing expansion is projected to further stimulate economic growth, create thousands of jobs, and contribute to the overall development of the community.

Kyung highlighted Samsung’s commitment to environmental sustainability and workforce development. The company plans to operate using 100% clean energy and implement advanced water management technologies. It is also investing in education and training programs to develop a new generation of semiconductor professionals, including partnerships with educational institutions and programs for military veterans.

In expressing his gratitude to President Biden, Secretary Raimondo, and other governmental and community supporters, Kyung emphasized the collaborative effort between Samsung and various levels of government. This collaboration is seen as pivotal in advancing America’s semiconductor industry and ensuring its global competitiveness.

The Semiconductor Industry Association also commended Samsung for its investment in U.S.-based manufacturing and acknowledged the progress made by the U.S. Commerce Department in implementing the CHIPS Act’s manufacturing incentives and R&D programs. The association looks forward to continued collaboration with government and industry leaders to revitalize U.S. chip manufacturing and research.

In conclusion, Samsung’s CHIPS Act funding and the construction of the new fab complex in Taylor, Texas, mark significant milestones in the expansion of the semiconductor industry in the United States. With multi-billion dollar funding packages for Intel, TSMC, and now Samsung, the domestic chip production program is bolstering the country’s chip manufacturing capabilities and strengthening its competitiveness in advanced technologies. The investment from Samsung will not only boost production capacity but also contribute to the growth of the local semiconductor ecosystem, creating thousands of jobs and stimulating economic development. Additionally, Samsung’s commitment to environmental sustainability and workforce development demonstrates its dedication to responsible and inclusive growth. Overall, this expansion is a testament to the collaborative efforts between Samsung, the U.S. government, and the local community to advance the semiconductor industry and secure the country’s position as a global leader.

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