Samsung set to be granted $6.4 billion from the CHIPS and Science Act.

Samsung is set to receive $6.4 billion in direct funding as part of the United States CHIPS and Science Act to enhance its manufacturing capabilities in the country. The US Secretary of Commerce, Gina Raimondo, made the announcement at Samsung’s new semiconductor manufacturing facility in Taylor, Texas. Concerned about future disruptions, the Biden administration is prioritizing bringing manufacturing to the US, as seen during the pandemic where a reliance on East Asia for chips led to shortages in essential hardware for products like phones, computers, and cars.

In attendance at the event was Samsung Semiconductor CEO Kye Hyun Kyung, who stated that the investment will allow the company to expand its presence in Central Texas and supply chips for essential industries such as automotive, consumer technology, IoT, and aerospace. Samsung aims to strengthen the local semiconductor ecosystem and position the US as a global manufacturing hub. With the expected increase in demand from US customers for future products like AI chips, Samsung’s fabs will be equipped with cutting-edge technologies to enhance security in the US semiconductor supply chain.

Having been in Texas for nearly 30 years, Samsung has invested $18 billion in operating two fabs at its Austin campus since 1996. With the CHIPS and Science Act investment, Samsung plans to invest over $40 billion in the region in the coming years, transforming it into a leading US semiconductor manufacturing hub. The move to diversify chip manufacturing is not only happening in the US but also in Europe, where conflicts around the world are prompting a need for both regions to build their semiconductor capabilities.