Samsung will receive $6.4 billion in direct funding as part of the US CHIPS and SCIENCE Act to help it expand its manufacturing capabilities in the US. The announcement was made by US Commerce Secretary Gina Raimondo at Samsung’s new semiconductor manufacturing facility in Taylor, Texas.

While Samsung may be a foreign company, the Biden administration is more concerned with bringing manufacturing to the US to avoid future disruptions. It has been made clear during the pandemic that relying on East Asia for chips is not good for the US and Europe when they cannot get the critical hardware they need for every So many products including phones, computers and cars.

Also at the event was Samsung Semiconductor CEO Kye Hyun Kyung who said that the investment will help the company expand in Central Texas and allow it to produce chips for vital industries such as automotive, consumer technology, IoT, aerospace and more.

In a comment, Kyung said:

“We’re not just expanding manufacturing facilities; we’re strengthening the domestic semiconductor ecosystem and positioning the U.S. as a global destination for semiconductor manufacturing. To meet the expected increase in demand from US customers, for future products such as artificial intelligence chips, our factories will be equipped with advanced process technologies and help bring security to the US semiconductor supply chain.”

Samsung has been in Texas for almost 30 years. Since 1996, the company has invested $18 billion in operating two plants on its campus in Austin, Texas. With the investment in CHIPS and the Science Act, Samsung is now expected to invest more than $40 billion in the region over the next few years, making it an “expanding center of leading semiconductor manufacturing in the US.

The move to diversify chip manufacturing is happening in both the US and Europe. With many conflicts emerging recently around the world, it probably deserves the US and Europe to have their own semiconductor manufacturing capabilities.

source: Samsung