Samsung Electronics’ investment in Texas to produce chips is expected to get up to $6.4 billion in incentives from the US government, which was disclosed on Monday.
According to DPA news agency, the incentive is a part of Washington’s larger initiative to revive stateside semiconductor manufacturing in the US due to worries that the largest economy in the world is lagging behind in the race to build the chips that drive artificial intelligence (AI) systems.
Samsung intends to use the Taylor, Texas facility to produce two-nanometer semiconductors. Currently, the only places to find such semiconductor technology are Asia, primarily Taiwan, where market leader TSMC is based.
Following their selection as beneficiaries, TSMC Arizona Corporation, Intel, GlobalFoundries, the American division of BAE Systems Plc, and Microchip Technology made this announcement.
In August 2022, US President Joe Biden enacted the CHIPS Act. To incentivize businesses to establish plants in the United States, the state offers up to $39 billion in subsidies.
TSMC just received a $6.6 billion grant, while Intel has gotten $8.5 billion.
The $6.4 billion that Samsung is investing will be used to expand its Texas facility, which has been under development since 2022.
Of the total, the Commerce Department intends to invest roughly $28 billion in cutting-edge chip manufacturers like Samsung.
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