The US government has lowered the grants and subsidies allocated to Samsung under the CHIPS Act. According to a recent announcement by the Commerce Department, the Korean firm will now receive funding of up to $4.75 billion, down from the originally planned $6.4 billion. This adjustment follows Samsung’s decision to scale down its investment compared to the initial plan.
Samsung receives $4.75 chip funding from the US government
The CHIPS Act is a new initiative from the US government to bolster the domestic semiconductor industry. Launched in 2022, it offers grants, subsidies, and other benefits to semiconductor companies for expanding their production in the US. Earlier this year, the Biden administration announced the preliminary funding structure for all eligible firms.
As part of this funding, Samsung was supposed to receive $6.4 billion. The amount reflected the Korean firm’s long-term investment in its US-based chip factories. It promised to invest over $44 billion in the next few years to construct two new plants in Taylor, Texas. Samsung already has a plant operational for nearly three decades in Austin, Texas.
The first of the two upcoming plants in Taylor could be operational by 2026 if not next year. It was originally expected to cost $17 billion but various factors have added to the total cost. The rest of the investment goes toward the second plant, where Samsung plans to construct a research center and a packaging facility. It also plans to expand the Austin factory.
However, it appears the Korean firm has revised its plans. According to the Commerce Department, Samsung will invest over $37 billion in the US semiconductor industry in the coming years. As such, its funding has been lowered to $4.75 billion. The official announcement confirms plans to construct two factories in Taylor, an R&D center, and the expansion of the Austin plant, but there’s no mention of a packaging facility.
“With nearly 30 years of semiconductor manufacturing experience in the United States, we are proud and grateful for the long-standing relationships we have established with our American partners and customers, as well as communities across Texas,” said Young Hyun Jun, a Vice Chairman at Samsung. ” We look forward to further collaboration with our American partners to meet the evolving needs of the upcoming AI-driven era.”
