Samsung Electronics commits to $40 billion in funding for semiconductor development in Texas

The US government has announced plans to allocate $6.4 billion in funding through the CHIPS and Science Act to help develop a semiconductor ecosystem in central Texas. This collaboration with Samsung Electronics will see over $40 billion invested in funding over several years, as outlined in a preliminary memorandum of terms.

Samsung has agreed to support various projects spanning two locations in Texas. In the city of Taylor, plans include the construction of two logic foundry fabs, a research and development fab, and an advanced packaging facility. Meanwhile, the city of Austin will witness the expansion of existing facilities to enable the production of technologies vital to multiple US industries.

As part of this partnership, Samsung has committed to working with the Department of Defense to enhance collaboration. US Secretary of Commerce Gina Raimondo believes that such investments under the CHIPS and Science Act will encourage additional private sector investments, resulting in a secure and resilient semiconductor supply chain within the country.

Kye Hyun Kyung, President and CEO of Samsung Electronics’ device solutions division, emphasized that this collaboration with the US government goes beyond expanding production facilities. By reinforcing the local semiconductor ecosystem, Samsung aims to position the US as a prominent global semiconductor manufacturing hub.