## Samsung to Receive $6.4 Billion in Funding for Texas Chip Manufacturing Cluster
The Biden administration has reached an agreement to provide up to $6.4 billion in direct funding to Samsung Electronics for the development of a computer chip manufacturing and research cluster in Taylor, Texas. This significant investment is part of a larger project expected to exceed $40 billion with the inclusion of private funds. The government support stems from the CHIPS and Science Act, signed into law by President Joe Biden in 2022, aiming to revitalize domestic production of advanced computer chips.
"The proposed project will propel Texas into a state-of-the-art semiconductor ecosystem," stated Commerce Secretary Gina Raimondo. "It puts us on track to hit our goal of producing 20% of the world's leading-edge chips in the United States by the end of the decade."
The project is anticipated to generate at least 17,000 construction jobs and over 4,500 manufacturing jobs. Samsung's cluster in Taylor will encompass two factories dedicated to the production of four- and two-nanometer chips, a research and development facility, and a packaging facility for chip components.
The first factory is projected to be operational in 2026, followed by the second in 2027. Additionally, the funding will support the expansion of an existing Samsung facility in Austin, Texas, enabling the company to manufacture chips directly for the Defense Department.
This strategic investment underscores the growing importance of advanced technology in national security, particularly amidst the ongoing competition between the U.S. and China. Samsung's commitment to chip production in the U.S. aligns with the government's efforts to bolster domestic manufacturing capabilities and reduce reliance on foreign sources.
The $6.4 billion in direct funding is supplemented by an investment tax credit from the U.S. Treasury Department that Samsung intends to claim. The government has previously announced similar support for other chipmakers, including Intel and Taiwan Semiconductor Manufacturing Co., as part of its broader strategy to revitalize the American semiconductor industry.