US to grant $6.4 billion in CHIPS Act funding to Samsung

The US government has announced a plan to award Samsung Electronics up to $6.4 billion in grants to support the tech giant’s chipmaking investment in Texas. The move is part of a broader effort to bring semiconductor production back to the US, addressing concerns about falling behind in developing chips for artificial intelligence systems.

Samsung plans to manufacture two-nanometre chips at the plant in Taylor, Texas, a technology currently exclusive to Asia. This follows the selection of other beneficiaries such as TSMC Arizona Corporation, Intel, GlobalFoundries, the American subsidiary of BAE Systems Plc, and Microchip Technology.

The CHIPS Act, signed into law by President Joe Biden in August 2022, provides up to $39 billion in state support to encourage manufacturers to establish plants in the US. Intel and TSMC have already received significant funding, with Samsung now set to use $6.4 billion to expand its Texas site, under construction since 2022.

The Commerce Department plans to invest around $28 billion of the total amount in leading-edge chipmakers like Samsung, marking a significant step in the effort to enhance the US semiconductor industry’s competitiveness on the global stage.


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