Samsung to receive $6.4B Chips Act boost for Texas fab
The Biden administration will award Samsung Electronics with up to USD 6.4 billion in direct funding to expand the company's semiconductor production in Texas as part of the CHIPS and Science Act.
Samsung Semiconductor CEO Kye Hyun Kyung and US Secretary of Commerce Gina Raimondo celebrated the investment which will enable Samsung to further expand in Central Texas and create new manufacturing capacity and capabilities.
“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 meet the expected surge in demand from U.S. customers, for future products like AI chips, our fabs will be equipped for cutting-edge process technologies and help bring security to the U.S. semiconductor supply chain.”
Samsung has been a part of the Texas ecosystem for a long time. Since 1996, Samsung Semiconductor has invested USD 18 billion in operating two fabs at its Austin, Texas, campus. In 2021, the South Korean company announced expansion into Taylor with a minimum of USD 17 billion to construct a new semiconductor manufacturing facility.
With the additional investment, through the CHIPS and Science Act, Samsung is expected to invest more than USD 40B in the region in the coming years.
"This project holds incredible importance, since 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. From 2022 to 2023, Samsung Austin Semiconductor’s economic impact on the region nearly doubled from USD 13.6 billion to USD 26.8 billion. Our continued expansion will undoubtedly unleash further investment and continued economic growth and job creation—providing significant benefit to the local, state, and national economy," Kye Hyun Kyung said during the announcement.
To meet the expected surge in demand from U.S. customers, for future products like AI chips, Samsung's fabs will be equipped for cutting-edge process technologies and help bring security to the US semiconductor supply chain.
"Not only are we investing in our facilities, but we’re also investing in our future, which is the semiconductor talent pipeline. We’re partnering with elementary schools, high schools, and colleges to create the next generation of semiconductor innovators, as well as programs that train military veterans so we can ensure we have the best people running our fabs," the CEO continued.
