The Biden administration has unveiled plans to provide South Korea’s Samsung Electronics with up to .4 billion in grants to boost chip production in central Texas, a move aimed at strengthening the semiconductor industry in the United States. This funding, part of the 2022 Chips and Science Act, will support the construction of two chip production facilities, a research center, and a packaging facility in Taylor, Texas. Additionally, Samsung will use the funds to enhance its semiconductor facility in Austin, Texas.
Commerce Department Secretary Gina Raimondo emphasized that these investments will not only increase chip output for industries such as aerospace, defense, and automotive but also enhance national security. Raimondo stressed the importance of the United States reclaiming its leadership in semiconductor manufacturing, advanced packaging, research, and development.
Samsung Electronics Co-CEO Kyung Kye Hyun expressed his commitment to meeting the growing demand from US customers for future products like AI chips. The company’s fabs will be equipped with cutting-edge process technologies to ensure security in the US semiconductor supply chain.
Production is expected to begin in 2026, with analysts predicting that Samsung will start with 4-nanometer chips at its pilot production line before expanding to 2-nanometer chips. This move positions Samsung as the third-largest recipient of Chips Act awards and reflects the Biden administration’s ongoing efforts to strengthen the chipmaking industry in the US.
The overarching goal is to reduce reliance on China and Taiwan, as the US share of global semiconductor manufacturing capacity has dropped from 37% in 1990 to 12% in 2020. By supporting companies like Samsung, the administration aims to bolster domestic chip manufacturing and ensure a secure supply chain for critical industries.
