Samsung has recently announced that it will receive $6.4 billion in direct funding as part of the United States CHIPS and Science Act to enhance its manufacturing capabilities in the country. This investment will allow Samsung to expand its presence in Central Texas and supply chips for essential industries such as automotive, consumer technology, IoT, and aerospace.
The US Secretary of Commerce, Gina Raimondo, made the announcement at Samsung’s new semiconductor manufacturing facility in Taylor, Texas. The Biden administration is prioritizing bringing manufacturing to the US as seen during the pandemic where a reliance on East Asia for chips led to shortages in essential hardware for products like phones, computers, and cars.
Samsung Semiconductor CEO Kye Hyun Kyung was in attendance at the event and stated that the investment will allow Samsung to diversify chip manufacturing not only in the US but also in Europe. Conflicts around the world are prompting both regions to build their semiconductor capabilities. With this move, Samsung aims to strengthen the local semiconductor ecosystem and position the US as a global manufacturing hub.
Having been in Texas for nearly 30 years, Samsung has invested $18 billion in operating two fabs at its Austin campus since 1996. With the CHIPS and Science Act investment, Samsung plans to invest over $40 billion in the region in the coming years, transforming it into a leading US semiconductor manufacturing hub.
