The U.S. government plans to allocate $6.4 billion in funding through the CHIPS and Science Act to help develop a semiconductor ecosystem in central Texas in collaboration with Samsung Electronics. According to the Department of Commerce, Samsung has agreed to invest over $40 billion in funding over the course of several years, as outlined in a preliminary memorandum of terms.
The proposed investments would support various projects spanning two locations in Texas. In the city of Taylor, there are plans for the construction of two logic foundry fabs, a research and development fab, and an advanced packaging facility. Meanwhile, the city of Austin would witness the expansion of existing facilities to enable the production of technologies vital to multiple U.S. industries.
As part of the partnership, Samsung has committed to working with the Department of Defense to enhance collaboration. U.S. Secretary of Commerce Gina Raimondo believes that such investments under the CHIPS and Science Act will encourage additional private sector investments, resulting in a secure and resilient semiconductor supply chain within the country.
Kye Hyun Kyung, the President and CEO of Samsung Electronics’ device solutions division, emphasized that the collaboration with the U.S. government goes beyond expanding production facilities. By reinforcing the local semiconductor ecosystem, Samsung aims to position the U.S. as a prominent global semiconductor manufacturing hub.