Samsung Chip Production in Texas Gets $6.4 Billion Boost

Samsung Austin Semiconductor plant | Photo by Brandon Bell/Getty Image

The Biden administration will grant Samsung Electronics billions in taxpayer dollars to invest in semiconductor production in central Texas.

Up to $6.4 billion in funding will be awarded to the South Korean electronics giant. The grants are being sourced from the $40 billion 2022 CHIPS and Sciences Act, which aims to expand domestic semiconductor production and lessen reliance on importing the tech from countries like China. The money will be used to support four separate facilities in Taylor, Texas.

“Samsung’s investment of over $40 billion will help cement Texas’ position as the No. 1 state for semiconductors, bringing in more business investment to Texas communities and creating thousands of good-paying jobs in our great state. The future is full of microchips, and we’re proud that some of the world’s most advanced chips will be Made in Texas,” Gov. Greg Abbott was quoted as saying in an April 16 press release after meeting with Samsung executives.

“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,” said Kyung Hyun, co-CEO of Samsung Electronics, per CNN.

In 1990, 37% of global semiconductor manufacturing occurred in the United States. By 2020, that number had shrunk to just 12%.

Samsung aims to kickstart chip production in central Texas in 2026. Commerce Secretary Gina Raimondo expects the project to create a minimum of 17,000 construction jobs and over 4,500 manufacturing positions in the region.

“The proposed project will propel Texas into a state-of-the-art semiconductor ecosystem. … It puts us on track to hit our goal of producing 20% of the world’s leading-edge chips in the United States by the end of the decade,” said Raimondo, per CNBC.

The chip wars have been heating up in recent years, driven by the COVID-19 lockdowns and ensuing supply chain disruptions. Some industries, like the auto sector, have struggled to secure the chips needed for production, threatening domestic markets.

With the rapid ascension of artificial intelligence, the need to lockdown domestic chip industries has been made all the more pressing. AI relies on advanced semiconductors, which are frequently manufactured abroad, including in nations where the U.S. may have tense diplomatic relationships.

With the latest announcement from the Biden administration, Samsung will be the third-largest recipient of CHIPS Act funding.

Support our non-profit journalism

Submit a Comment

Your email address will not be published. Required fields are marked *

Continue reading on the app
Expand article