Samsung May Get $6B CHIPS Act Funding for U.S. Expansion

TL/DR –

Samsung Electronics is set to receive a $6 billion federal grant from the US Commerce Department to expand its chipmaking plants in the United States. The grant, part of the $28 billion set aside for manufacturers under the CHIPS (Creating Helpful Incentives to Produce Semiconductors) and Science Act of 2022, comes after Samsung announced plans to invest about $200 billion over the next two decades on 11 chipmaking plants mainly in Texas. The grant’s official announcement and details of how Samsung intends to invest the funds are still pending.

Samsung on Verge of Major US Manufacturing Grant

Samsung Electronics is set to receive a significant federal grant from the US Commerce Department to boost its chipmaking plants in the US.

The South Korean chip manufacturer is likely to get $6B through the CHIPS and Science Act of 2022, according to Bloomberg reports citing anonymous sources.

This grant is part of the Commerce Department’s strategy to shore up US manufacturing, setting aside $28B in total for numerous manufacturers. Other companies slated for substantial grants include Taiwan Semiconductor Manufacturing Co, Intel Corp, and Micron Technology.

It’s yet unclear where Samsung will invest this new influx of funds, but it’s expected to build on the company’s previous US investments. These include a $17B, 7M SF manufacturing plant in Taylor, Texas, selected in 2021.

Samsung has already proposed a considerable $200B US investment over the next 20 years, aiming to establish 11 new chipmaking plants in Texas, according to a Wall Street Journal report. In 2023, the company’s economic impact in Texas doubled year-over-year from $13.6B to $26.8B.

The US has recently increased funding to stimulate more chip manufacturing. Industrial construction doubled in 2022 due to the Inflation Reduction Act and the CHIPS and Science Act, unlocking $39B in first-round funding.

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