Samsung to receive $6.4 billion from the CHIPS and Science Act to establish semiconductor ecosystem in Texas 

Samsung to receive $6.4 billion from the CHIPS and Science Act to establish semiconductor ecosystem in Texas 

April 22, 2024
This funding will complement Samsung’s investment of $40 billion into its existing hub in Texas, which would create 20,000 new jobs in the coming years.

Samsung Electronics has signed a non-binding preliminary memorandum of terms (PMT) with the U.S. Department of Commerce. According to the agreement, Samsung, a semiconductor company that focuses on advanced memory and advanced logic technologies, will receive $6.4 billion from the CHIPS and Science Act. This funding will complement Samsung’s investment of $40 billion into its existing hub in Texas, which would create 20,000 new jobs in the coming years.

With this funding, Samsung plans to expand its Texas location with two new leading-edge logic fabs, an R&D fab, and an advanced packaging facility in Taylor, as well as an expansion to their existing Austin facility. Both parties hope this initiative will help strengthening U.S. economic and national security and increasing the resilience of both the U.S. and global semiconductor supply chains. Samsung also plans to claim the U.S. Department of the Treasury’s Investment Tax Credit, which is expected to cover up to 25% of qualified capital expenditures. 

What people are saying

In a recent quote, President Biden said, “I signed the CHIPS and Science Act to restore U.S. leadership in semiconductor manufacturing and ensure America’s consumers, businesses, and military maintain access to the chips that underpin our modern technology. This announcement will unleash over $40 billion in investment from Samsung, and cement central Texas’s role as a state-of-the-art semiconductor ecosystem, creating at least 21,500 jobs and leveraging up to $40 million in CHIPS funding to train and develop the local workforce.” 

Kye Hyun Kyung, President and CEO of the Device Solutions (DS) Division at Samsung Electronics, added, “We’re not just expanding production facilities; we’re strengthening the local semiconductor ecosystem and positioning the U.S. as a global semiconductor manufacturing destination. To meet the expected surge in demand from U.S. customers, for future products like AI chips, our fabs will be equipped for cutting-edge process technologies and help advance the security of the U.S. semiconductor supply chain.” 

Latest semiconductor news

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About the Author

Alexis Gajewski | Senior Content Strategist

Alexis Gajewski has over 15 years of experience in the maintenance, reliability, operations, and manufacturing space. She joined Plant Services in 2008 and works to bring readers the news, insight, and information they need to make the right decisions for their plants. Alexis also authors “The Lighter Side of Manufacturing,” a blog that highlights the fun and innovative advances in the industrial sector. 

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