Samsung Secures $6.4B In US Funding To Build Massive Chip Fabs In Texas

The Biden administration has agreed to grant $6.4 billion in direct funding to Samsung as part of the CHIPS and Science Act, which in part will go towards an advanced semiconductor facility in Texas. The investment is part of a broader effort to "restore US leadership in semiconductor manufacturing." It will also cement central Texas as a state-of-the art semiconductor ecosystem, President Joe Biden said in a statement.

Texas is already a hotbed for chip manufacturing. Samsung points out that it's invested $18 billion since 1996 towards operating a pair of fabs at its Austin, Texas campus. More recently (in 2021), Samsung announced an expansion in Taylor to construct a new manufacturing facility, which will entail at least $17 billion in additional investments.

Now with the CHIPS Act funding in play, Samsung is set to invest over $40 billion to further expand in central Texas. At present, Samsung is busy building two major facilities in the region, including a chip fab and a packaging plant. Those factories will crank out advanced 2-nanometer and 4-nanometer chips. The grant will also fund a research and development center in the area.

"We’re not just expanding production facilities; we’re strengthening the local semiconductor ecosystem and positioning the US as a global semiconductor manufacturing destination," said Kye Hyun Kyung, CEO of Samsung Semiconductor. "To meet the expected surge in demand from US customers, for future products like AI chips, our fabs will be equipped for cutting-edge process technologies and help bring security to the US semiconductor supply chain."

Samsung's Texas project comprises over 1,200 acres and five projects across its Taylor and Austin sites. In total, the semiconductor manufacturing facilities will collectively occupy over 6 million square feet. The investment is also expected to create 21,500 jobs to train and develop the local workforce.

"These facilities will support the production of some of the most powerful chips in the world, which are essential to advanced technologies like artificial intelligence and will bolster U.S. national security," President Biden said in a statement.

Samsung's $6.4 billion in CHIPS Act funding arrives on the heels of Intel securing $8.5 billion from the Biden administration, along with TSMC securing $11.6 billion for its Arizona chip fabs. The messaging is clear, in that the US government is aiming to produce as many homegrown computer chips as possible, especially as the industry moves into the AI era.