The Korean electronic firm ‘Samsung Electronics’ has just been awarded an efficient grant of up to $6.4 billion by the US government.
This significant and huge grant aims to help Samsung expand its chip production in Central Texas. The Korean giant has decided to invest approximately $45 billion in constructing and expanding its Texas facilities over the next few years.
Apart from Samsung, the rest of the tech giants, including TSMC, Intel, and Microchip, are receiving incentives from the Department of Commerce. The key reason behind this subsidy is to boost US chip production for critical industries such as defense and autos, as well as avoid dependence on other chipmakers like China and Taiwan.
The US is planning for its comeback with a bang in chip manufacturing, in which Samsung is playing a key role as the brand is investing a huge amount in US chip production along with the support of the US government. Samsung got this grant under the CHIPS Act. This funding will result in building two new chip factories, a research center, and a packaging facility.
This collaboration is a good opportunity for both Samsung and the US government to make America a leader again in chip design as well as in advanced manufacturing, research and development, and packaging. The Semiconductor Industry Association (SIA) praises Samsung and the US government’s CHIPS Act incentives.
Commerce Secretary Gina Raimondo illuminates the importance of this project for raising US technological capabilities and innovation in the semiconductor market.
