The Biden administration has recently secured a deal to allocate $6.4 billion in funding to Samsung Electronics for the establishment of a computer chip manufacturing and research center in Texas. This financial support, disclosed by the Commerce Department, forms part of a substantial investment that is projected to surpass $40 billion in collaboration with private investments. The initiative falls under the CHIPS and Science Act, a move by President Biden to revitalize the domestic production of cutting-edge computer chips in the United States.
Commerce Secretary Gina Raimondo expressed her optimism about the project during a media briefing, highlighting its potential to transform Texas into a modern semiconductor hub. The development is poised to contribute significantly to the goal of producing 20% of the world's leading-edge chips in the U.S. by the end of the decade. The construction of Samsung's cluster in Taylor, Texas, is set to feature two factories specializing in manufacturing four- and two-nanometer chips, along with a research and development facility and a packaging center for chip components. This expansion would not only generate more than 17,000 construction jobs but also over 4,500 manufacturing positions, according to Raimondo's estimations.
Furthermore, the establishment of these factories is projected to contribute to the enhancement of an existing Samsung facility in Austin, Texas. The timeline indicates that the first factory is anticipated to commence operations in 2026, followed by the second factory in 2027. Lael Brainard, director of the White House National Economic Council, emphasized the national security implications of this development, highlighting that Samsung will be able to produce chips for the Defense Department directly from Austin, incorporating advanced technology capabilities to address security concerns in the U.S.-China competition landscape. Samsung has also signaled its intention to access an investment tax credit from the U.S. Treasury Department in addition to the $6.4 billion in government funding. The administration's support for chipmakers extends to other industry players like Intel and Taiwan Semiconductor Manufacturing Co., with various projects planned across the nation to bolster domestic chip production capabilities.