Samsung Receives $6.4 Billion to Construct Texas Chip Factories of the Future

Samsung Receives $6.4 Billion to Construct Texas Chip Factories of the Future

Samsung would be able to establish two new fabrication lines for 4-nanometer and 2-nanometer chips, a research plant, and an advanced chip packaging facility in Taylor with the support of the proposed CHIPS and Science Act contribution. Additionally, it would enlarge Samsung’s current Austin plant.

Samsung’s ambitions for Texas, according to Commerce Secretary Gina Raimondo, will aid in the development of chips for a variety of applications, including AI, automotive applications, communications, and defense.

Jobs would be involved. Up to $40 million would be set aside in the potential commitment for workforce funding.

In the end, Samsung plans to spend more than $0 billion on expansions over the course of the next ten years. According to the Commerce Department, the funding would help create approximately 21,500 employment.

Samsung is the latest company to receive at least proposed CHIPS money, following Intel, Taiwan Semiconductor Manufacturing Company (TSMC), and others. The Act, which was signed in 2022, aimed to promote domestic chip production. The proposal theoretically avoids supply chain and geopolitical problems by lessening American reliance on China and other nations for technology.

Texas-based Samsung facilities have catered to a number of well-known customers, including rivals like Apple. With the transition to 2nm and smaller circuits that are denser, faster, and more efficient than current components, Samsung may be able to better service those customers with the expansion.

It’s uncertain if the investment will have the desired outcome. Samsung’s facilities may not attract the predicted number of new recruits, nor is there a certainty that it will receive the entire financing. Factories are using automation more and more, but it’s unclear how many of the anticipated positions would be high-paying or permanent.

Still, the statement is a first step in the right direction for the Biden White House. Formal, if hesitant, moves toward the administration’s goals of revitalising domestic production in a number of areas, including electric cars, have been taken with agreements with companies like as Samsung.