The Biden administration has recently made a significant move to support Samsung Electronics in developing a state-of-the-art semiconductor ecosystem in Texas. This initiative, part of the CHIPS and Science Act signed by President Joe Biden in 2022, aims to boost the production of advanced computer chips within the United States. The Commerce Department announced the provision of up to $6.4 billion in direct funding for Samsung, with an overall investment in the cluster projected to surpass $40 billion when combined with private capital.
The proposed project in Texas is expected to help the United States reach the target of producing 20% of the world's cutting-edge chips by the end of the decade. Commerce Secretary Gina Raimondo emphasized the significant job creation potential of this endeavor, estimating that it will generate at least 17,000 construction jobs and over 4,500 manufacturing positions. This project will see Samsung establish a cluster in Taylor, Texas, consisting of two factories dedicated to manufacturing four- and two-nanometer chips, a research and development facility, and a packaging facility for chip components.
Furthermore, the funding will also support the expansion of an existing Samsung facility in Austin, Texas. This expansion includes providing Samsung the capability to manufacture chips directly for the Defense Department, addressing national security concerns related to advanced technology capabilities. The government's support for Samsung, including the investment tax credit from the U.S. Treasury Department, forms part of a broader strategy to bolster domestic chip production, with earlier terms announced to back other chipmakers like Intel and Taiwan Semiconductor Manufacturing Co. across various projects nationwide.