US awards $4.74 billion to Samsung to expand chip production

The US Commerce Department has announced that it was finalizing an award of up to $4.745 billion dollars to Samsung Electronics to boost chip production. Notably, earlier in April this year, Samsung already secured a massive grant worth $6.4 billion from the US in similar chip investments. Apart from Samsung, the US is also giving chip awards to two more companies including Texas Instruments and Amkor. In total, Samsung and the other two chip makers have received a grant worth up to $6.75 billion dollars from the US.

The companies will utilize the new grants to expand chip production

The US is awarding up to $6.75 billion dollars to Samsung, Texas Instruments, and Amkor to establish a robust semiconductor manufacturing supply chain within the States. Notably, Congress in August 2022 announced a $39 billion subsidy program for US semiconductor manufacturing. Additionally, there are incentives of around $75 billion from government and private institutions. According to Reuters, Commerce has finalized more than $33 billion in grants of the over $36 billion in proposed incentives funding.

Texas Instruments has received chip awards worth up to $1.61 billion. As for Amkor Technology, it is getting an award of up to $407 million to help increase chip production. The company will use this grant to fund its planned $2 billion advanced semiconductor facility in Arizona. The proposed plant will be the largest of its kind in the States. The plant will package and test millions of chips for autonomous vehicles, data centers, and Apple, once fully operational.

Furthermore, the report has mentioned that Texas Instruments has pledged to invest over $18 billion through 2029. The company will use them to create two new chip production facilities in Texas and Utah. The new plants will create nearly 2,000 jobs in the chip manufacturing field.

The US cut Samsung’s new chip awards by ~$1.7 billion

Notably, the Commerce Department cut Samsung’s latest chip awards by nearly $1.7 billion as compared to April. A Samsung spokesperson said that the US has revised the mid-to-long-term investment plan to optimize overall investment efficiency. However, the South Korean tech giant declined to disclose details of its arrangement with the US Commerce Department.

As per administration officials, Samsung will invest nearly $45 billion to build two chip production facilities. Samsung will also create a research center and packaging facility by 2030 using these investments.

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