## 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 for Samsung Electronics to develop a computer chip manufacturing and research cluster in Taylor, Texas. This investment is part of a larger project expected to exceed $40 billion with private funding.
The funding comes from the CHIPS and Science Act, signed into law by President Biden in 2022 to revitalize domestic production of advanced computer chips. This project aligns with the goal of producing 20% of the world's leading-edge chips in the United States by the end of the decade.
"The proposed project will propel Texas into a state-of-the-art semiconductor ecosystem," said 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 expected to create at least 17,000 construction jobs and more than 4,500 manufacturing jobs. The cluster will include two factories for producing four- and two-nanometer chips, a research and development facility, and a packaging facility. The first factory is expected to be operational in 2026, with the second following in 2027.
The funding will also support the expansion of an existing Samsung facility in Austin, Texas. This expansion will enable Samsung to manufacture chips directly for the Defense Department, addressing national security concerns related to advanced technology and competition with China.
In addition to the $6.4 billion, Samsung will also claim an investment tax credit from the U.S. Treasury Department. The government has previously announced similar support for other chipmakers like Intel and Taiwan Semiconductor Manufacturing Co. in projects across the country.