The Biden administration recently announced a significant agreement to provide Samsung Electronics with up to $6.4 billion in funding to establish a computer chip manufacturing and research cluster in Texas. This financial support, disclosed by the Commerce Department, is a portion of the anticipated total investment in the cluster, predicted to exceed $40 billion when combined with contributions from private sources. The initiative stems from the CHIPS and Science Act, a law signed by President Biden, which aims to revitalize the local production of advanced semiconductor technology in the United States.
Commerce Secretary Gina Raimondo expressed her belief that the proposed semiconductor project in Texas will lead the state to foster a cutting-edge ecosystem for chip production. Raimondo highlighted that this venture aligns with the target of producing 20% of the world's leading-edge chips within the United States by the conclusion of the decade. The establishment of Samsung's cluster in Taylor, Texas, is expected to feature two factories specializing in manufacturing four- and two-nanometer chips, alongside facilities for research, development, and packaging of chip components.
The timeline for the project outlines the first factory becoming operational by 2026, with the second factory following suit in 2027, as indicated by the government. Additionally, the funding will facilitate the expansion of an existing Samsung facility located in Austin, Texas. Lael Brainard from the White House National Economic Council emphasized that Samsung's inclusion in chip manufacturing for the Defense Department in Austin will be enabled by this development. This shift towards domestic chip production underscores the significance of advanced technology access as a pivotal national security concern amid the global technological competition between the U.S. and China. Furthermore, Samsung is expected to leverage the U.S. Treasury Department's investment tax credit in addition to the $6.4 billion government funding.
Furthermore, the government has previously outlined terms to aid other notable chip manufacturers, such as Intel and Taiwan Semiconductor Manufacturing Co., in various strategic projects distributed across the country. This collective effort signifies a broader national strategy to strengthen local chip manufacturing capabilities and reclaim a prominent position in the global semiconductor industry.