Samsung to Receive $6.4 Billion in Direct Funding from US for Semiconductor Manufacturing Expansion

Samsung has announced that it will 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 investment was announced by US Secretary of Commerce, Gina Raimondo, at 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.

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 the 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. Given recent conflicts and challenges in global supply chains, enhancing semiconductor manufacturing capabilities domestically appears to be a strategic decision for both countries. This further solidifies Samsung’s commitment to its role in advancing semiconductor technologies and its contribution to expanding domestic chip production capacity.