Key Points:
- Samsung Electronics plans to increase its semiconductor investment in Texas to approximately $44 billion and aims to announce its investment plan on April 15.
- The increase is expected to include the construction of a new chipmaking factory and facilities for advanced packaging and research and development.
- This move aligns with the company’s anticipation of securing grants under the 2022 CHIPS Act, which aims to strengthen domestic chip production.
- The U.S. Department of Commerce plans to allocate a significant portion of the $39 billion CHIPS Act fund to leading-edge chipmakers like Samsung and TSMC.
Samsung Electronics is set to significantly increase its semiconductor investment in Texas, with plans to allocate approximately $44 billion to the state, as reported by The Wall Street Journal. This move comes as the Korean tech giant anticipates securing grants under a U.S. initiative to bolster domestic chip production.
According to sources familiar with the matter, Samsung is expected to unveil its investment strategy in Taylor, Texas, on April 15. Initially announced in November 2021, Samsung’s original plan outlined a $17 billion investment for constructing a chipmaking facility in the city.
Samsung’s expanded investment will primarily focus on Taylor. New components include establishing a chip manufacturing plant and developing facilities dedicated to advanced packaging and research and development.
This development coincides with the anticipated receipt of grants under the 2022 CHIPS Act, which earmarked $39 billion in incentives to encourage semiconductor companies to enhance their presence by building, expanding, or modernizing facilities within the United States.
The U.S. Department of Commerce intends to allocate approximately $28 billion from the CHIPS Act fund to support leading-edge chipmakers, including Samsung and Taiwan Semiconductor Manufacturing Company (TSMC). Thus far, Intel, GlobalFoundries, the American subsidiary of BAE Systems, and Microchip Technology have been identified as beneficiaries of grants under the CHIPS Act initiative.
