The Biden administration plans to announce more than $6 billion next week to South Korea’s Samsung to expand its chip production in Tyler, Texas, in an effort to boost U.S. chip production, two people familiar with the matter said.
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Biden administration plans to announce more than $6 billion in funding for South South Korea Samsung The company will expand chip production in Tyler, Texas, next week as it expands chip production in the United States, two people familiar with the matter said.
this subsidyThe project, which will be unveiled by Commerce Secretary Gina Raimondo, will be used to build four factories in Tyler, including a $17 billion wafer manufacturing plant announced by Samsung in 2021, another factory, an advanced packaging facility and an R&D center, one of the sources said.
It also includes an investment in another undisclosed location, the sources said, adding that Samsung will more than double its U.S. investment to more than $44 billion as part of the deal.
The Commerce Department and Samsung declined to comment. Texas Gov. Greg Abbott’s office did not respond to a request for comment.
One source said it would be the third largest project in the plan, after Taiwan Semiconductor Manufacturing Co., Ltd.On Monday, the company secured $6.6 billion in investment and agreed to expand investment by $25 billion to $65 billion and add a third factory in Arizona by 2030.
The announcement would soon cap a series of major chip and science grants as the U.S. seeks to expand domestic chip production and attract funding that could be used to build factories in China and the region.
Congress approved the “Chip and Science Act” in 2022 to increase domestic semiconductor production through $52.7 billion in research and manufacturing subsidies. Lawmakers also approved $75 billion in government loan authorization, but one of the sources said Samsung plans not to accept any loans.
The CHIPS Act aims to reduce reliance on China and Taiwan as the U.S. share of global semiconductor manufacturing capacity has dropped from 37% in 1990 to 12% in 2020, according to the Semiconductor Industry Association.
The two said that U.S. President Joe Biden will not attend the event. He faces an uphill battle to win re-election in November against former President and Republican rival Donald Trump. Texas Republican Gov. Greg Abbott was invited to attend, one of the people added.
Although TSMC and IntelSamsung Electronics, which received $8.5 billion last month to expand U.S. chip production, will expand production in the key swing state of Arizona, while Samsung’s expansion in reliably Republican Texas is seen as unlikely to help Biden in the Democratic race. Win the tune.
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