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To Enhance Texas Chip Manufacturing, Biden Supports Samsung with $6.4 B Grants

The Department of Commerce announced on Monday that the Biden administration plans to allocate up to $6.4 billion in grants to South Korea’s Samsung Electronics. This funding aims to facilitate the expansion of chip production in central Texas, as part of a broader initiative to enhance chipmaking in the United States.

Under the 2022 Chips and Science Act, the grants will support the establishment of two chip production facilities, a research center, and a packaging facility in Taylor, Texas, as previously reported. Additionally, the funding will enable Samsung to enhance its semiconductor facility in Austin, Texas.

Commerce Department Secretary Gina Raimondo emphasized that these investments will not only boost chip output for industries like aerospace, defense, and automotive but also strengthen national security. Raimondo highlighted the importance of the United States reclaiming its leadership position in semiconductor manufacturing, advanced packaging, research, and development.

Samsung Electronics Co-CEO Kyung Kye Hyun said: “To meet the expected surge in demand from US customers, for future products like AI chips, our fabs will be equipped for cutting-edge process technologies and help bring security to the US semiconductor supply chain.”

Samsung anticipates commencing production in 2026. Analysts speculate that the company will initially produce 4-nanometer chips at its pilot production line, with eventual expansion to 2-nanometer chips.

This announcement positions Samsung as the third-largest recipient of Chips Act awards, according to Reuters. It represents the Biden administration’s ongoing efforts to bolster the chipmaking industry within the United States.

The overarching objective is to decrease dependence on China and Taiwan, given that the US share of global semiconductor manufacturing capacity has dwindled from 37% in 1990 to 12% in 2020, as reported by the Semiconductor Industry Association (SIA).