Samsung Allegedly Gets $6B from CHIPS Act for Expansion in the U.S.



Samsung Electronics is expected to receive a $6B federal grant from the US Commerce Department to expand its chipmaking operations in the US. This is part of the $28B in grants set aside by the Commerce Department for major manufacturers like Taiwan Semiconductor Manufacturing Co, Intel Corp, and Micron Technology. Although the grant’s allocation is still pending, it would add to Samsung’s previous investments in the US, which include a $17B manufacturing plant in Texas and a proposed $200B investment in 11 chipmaking plants over the next 20 years.

Samsung in Line for Major Federal Grant to Expand U.S. Chipmaking Plants

Samsung Electronics is set to receive a sizable federal grant to bolster its chipmaking investments in the U.S., according to anonymous sources quoted in a Bloomberg report.

The Commerce Department is planning to grant the South Korean chip manufacturer $6B through the CHIPS and Science Act of 2022 in the upcoming weeks. The grant is part of a $28B fund set aside for major manufacturers for their manufacturing projects. Among other beneficiaries are Taiwan Semiconductor Manufacturing Co., Intel Corp. and Micron Technology.

Although Samsung hasn’t commented, details on where the investment will be allocated are still pending. The grant will build upon Samsung’s previous U.S. investments, including a $17B, 7M SF manufacturing plant in Taylor, Texas, chosen in 2021 to host the plant.

In 2022, Samsung proposed a $200B investment in the U.S. over the next 20 years for 11 chipmaking plants in Texas, The Wall Street Journal reported. By 2023, Samsung doubled its economic impact in Texas year-over-year, from $13.6B to $26.8B, stated the company.

The grant is part of recent efforts to boost chip manufacturing in the U.S. Industrial construction doubled in 2022, spurred by the Inflation Reduction Act and the CHIPS and Science Act. The CHIPS Act unlocked $39B in first-round funding to incentivize chip factory production.

Read More US Economic News

Comments are closed.