US to award Samsung Electronics US$6 billion chip subsidy for Texas expansion, sources say
- The subsidy will go toward construction of four facilities in Taylor, including one US$17 billion chip-making plant that Samsung announced in 2021
- The announcement will cap off a string of major Chips and Science Act grants in quick succession, as the US seeks to expand domestic semiconductor production
The Biden administration plans to announce that it is awarding more than US$6 billion to South Korea’s Samsung Electronics next week to expand its semiconductor output in Taylor, Texas, as it seeks to ramp up chip-making in the United States, two people familiar with the matter said.
The subsidy, which will be unveiled by US Commerce Department Secretary Gina Raimondo, will go toward construction of four facilities in Taylor, including one US$17 billion chip-making plant that Samsung announced in 2021, another factory, an advanced packaging facility and a research and development centre, one of the sources said.
It will also include an investment in another undisclosed location, the source said, adding that Samsung will more than double its capital outlay in the US to more than US$44 billion as part of the deal.
The Commerce Department and Samsung declined to comment. Texas Governor Greg Abbott’s office did not respond to requests for comment.
One of the sources said it would be the third largest of the programme, just behind Taiwan Semiconductor Manufacturing Co (TSMC), which was awarded US$6.6 billion on Monday and agreed to expand its investment by US$25 billion to US$65 billion and to add a third Arizona factory by 2030.