Samsung may be able to secure the $6.4 billion US government grant from the CHIPS Act before Donald Trump assumes office. Reports indicate the Biden administration aims to finalize these subsidy agreements ahead of the presidential transition in January 2025. This comes amid speculation that the incoming president may consider reforms to semiconductor law.
The US government might credit Samsung’s CHIPS Act grant soon
Launched in 2022, the CHIPS and Science Act is one of the marquee industrial policies of the Joe Biden-led US government. The act incentivizes semiconductor companies to increase domestic production. The government offers grants and subsidies to support these efforts. This initiative aims to strengthen the US semiconductor industry, ensuring greater self-sufficiency and security in the sector.
All major chip companies announced expansion of their manufacturing facilities in the US, including Samsung, TSMC, and Intel. In return, the Biden administration promised grants of $6.4 billion, $6.6 billion, and $8.5 billion to the three semiconductor giants, respectively. Several other firms scored grants from the US government. However, most of them have yet to receive the amount.
With Joe Biden set to hand over powers to Donald Trump in January, there are concerns about the new administration potentially bringing changes to existing policy frameworks. Thankfully, Samsung and others may not be left hanging with no grants. According to a Bloomberg report, the Biden administration has accelerated efforts to finalize the CHIPS Act deals before the new President enters the White House.
As part of its expansion, Samsung is constructing its third semiconductor facility in the US. It already has a factory operational for decades in Austin, Texas, while another is coming up in Taylor, Texas. The latter is expected to be operational in 2025. The third one is also located in Taylor, with its total investment at these two sites likely crossing $45 billion over the next few years. Stay tuned for more updates.
