Last month, it was reported that Samsung could get a $6 billion grant from the US government to build advanced chip factories in the US. The US government has now officially announced that it is offering $6.4 billion in grants to Samsung Electronics for its chipmaking investments in Texas.
Samsung will invest $44 billion to make chips in Texas, USA
The US government announced earlier today that it plans to offer tax incentives of up to $6.4 billion to Samsung Electronics. The Commerce Department has reached this preliminary agreement with Samsung under the US government’s CHIPS and Science Act. This grant will ease Samsung’s efforts to build two chip plants (Austin and Taylor) in Texas. While the chip plant in Austin is old, the company is building an advanced chip plant in Taylor. Samsung is also said to be making a chip packaging facility and a chip research center.
Local chip production is set to reduce the USA’s reliance on other countries like China, South Korea, and Taiwan. It will also boost local aerospace, automobile, electronics, and defense industries.
White House National Economic Adviser Lael Brainard said, “The return of leading-edge chip manufacturing to America is a major new chapter in our semiconductor industry.” Biden’s administration has already granted similar tax incentives and sops to competing chip firms, including Intel, Global Foundries, Microchip Technology Inc., and TSMC.