US Approves $4.7 Billion Subsidy for Samsung Under CHIPS Act

Washington, Dec 21 (NationPress) The US Commerce Department has committed up to $4.745 billion in direct funding to Samsung Electronics to bolster the South Korean technology leader's investment in chip manufacturing in central Texas, as part of efforts to fortify domestic semiconductor production.

This announcement follows a preliminary agreement with Samsung in April, which outlined up to $6.4 billion in grants under the CHIPS and Science Act, according to reports from Yonhap news agency.

Additionally, the department confirmed a final decision to allocate up to $458 million in direct funding and up to $500 million in loans to another South Korean company, SK hynix, for its investment in Indiana.

The funding will support Samsung's plans to invest over $37 billion in the coming years to transform its existing operations in central Texas into a comprehensive ecosystem dedicated to the development and production of cutting-edge chips in the United States, as stated by the department.

Samsung's investment initiative includes the establishment of two new leading-edge logic fabs and a research and development fab in Taylor, along with an expansion of their current facility in Austin.

According to Secretary of Commerce Gina Raimondo, "With this investment in Samsung, the U.S. is now officially the only country on the planet that is home to all five leading-edge semiconductor manufacturers."

She further emphasized, "This is an extraordinary achievement, which will ensure we have a steady, domestic supply of the most advanced semiconductors that are essential to AI and national security, while also creating tens of thousands of good-paying jobs and transforming communities across the country."

Jun Young-hyun, vice chairman and CEO of Device Solutions Division at Samsung Electronics, expressed optimism for further partnerships with U.S. companies to address the "evolving needs of the upcoming AI-driven era."

"With nearly 30 years of semiconductor manufacturing experience in the United States, we are proud and grateful for the long-standing relationships we have established with our American partners and customers, as well as communities across Texas," Jun stated.

"Our agreement with the U.S. Government today under the CHIPS and Science Act marks another milestone as we continue to invest and build a state-of-the-art semiconductor ecosystem in the U.S."

The department highlighted that Samsung's investment under the CHIPS initiative is expected to generate approximately 12,000 construction jobs and over 3,500 manufacturing jobs in the next five years, while stimulating commercial growth in the region.