Article Summary –
Samsung Electronics is expected to receive a $6B federal grant from the US Commerce Department for expanding its chipmaking plants in America. The grant, part of the $28B set aside through the CHIPS and Science Act of 2022 for manufacturers, would supplement Samsung’s previous US investments, including a $17B manufacturing plant in Texas and a proposed $200B expenditure on 11 chipmaking plants over the next 20 years. Other companies such as Taiwan Semiconductor Manufacturing Co., Intel Corp., and Micron Technology are also expected to receive grants.
Samsung Electronics Looks Set to Secure $6B US Federal Grant for Chipmaking Expansion
Samsung Electronics is expected to receive a significant federal grant for boosting its chipmaking investments in the U.S. The U.S. Commerce Department looks set to award Samsung a $6B grant through the CHIPS and Science Act of 2022 in the coming weeks, according to Bloomberg.
This move falls under a broader initiative of the Commerce Department, which has reserved $28B in grants to support manufacturing projects of top manufacturers. Alongside Samsung, Taiwan Semiconductor Manufacturing Co, Intel Corp, and Micron Technology are projected to receive billions in funding according to Bloomberg.
It’s not clear where the grant would be invested, but this funding would contribute to Samsung’s ongoing U.S. investments. These include a $17B, 7M SF chipmaking plant in Taylor, Texas, chosen by Samsung in 2021.
In 2022, the company proposed a $200B investment for 11 chipmaking plants in Texas over the next two decades, as reported by The Wall Street Journal. By 2023, Samsung had doubled its economic impact in Texas to $26.8B, according to company data.
The impending awards are part of the nation’s continued efforts to stimulate more chip production. Industrial construction doubled in 2022 partly due to the Inflation Reduction Act and the CHIPS and Science Act, which previously unlocked $39B in initial funding to incentivize chip factory production.
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