US to Grant Samsung $6.4bn for Chip Plants

The United States of America government has signed a preliminary agreement to provide Samsung with up to $6.4 billion in funding to build new semiconductor fabrication plants in Texas. 

This was disclosed in a press release by the U.S. Secretary of Commerce, Gina Raimond on Monday. 

According to the press release, the U.S. by investing in domestic chip production hopes to reduce its reliance on foreign manufacturers and strengthen its technological independence.

This move comes as the U.S. grapples with a global chip shortage that has impacted various industries, from automobiles to consumer electronics. 

The funding for Samsung is part of the CHIPS and Science Act, a recently passed law aimed at bolstering the American semiconductor industry. 

The agreement with Samsung specifies that the company could receive up to $6.4 billion in direct funding, contingent on them fulfilling their investment commitments. 

Samsung reportedly plans to invest a total of $40 billion in the Texas facilities, which would focus on mass production of cutting-edge 4-nanometer and 2-nanometer chips. 

These next-generation chips are crucial for powering advanced technologies like artificial intelligence. 

The agreement is expected to create significant job opportunities in Texas. 

The project is estimated to generate at least 21,500 jobs, according to a statement by President Joe Biden. 

Additionally, the expansion of Samsung's existing chipmaking facility in Austin is expected to benefit the U.S. aerospace, defense, and automotive industries.