The US government has finalized a $4.745 billion subsidy for Samsung Electronics to support its semiconductor manufacturing facilities in Texas. This funding, awarded under the CHIPS Incentives Program, aims to boost domestic chip production as part of the Biden administration’s broader initiative to strengthen the US semiconductor industry. The decision comes just weeks before President-elect Donald Trump takes office amidst his criticism of the outgoing administration’s semiconductor policies.
The US Department of Commerce stated that the subsidy marks the culmination of an agreement initially proposed in April, which included up to $6.4 billion in grants for Samsung. The revised amount reflects adjustments following Samsung’s scaled-back investment plans for the Texas facility. Additionally, the department announced funding for SK Hynix, another South Korean company, which will receive up to $458 million in direct funding and $500 million in loans for its semiconductor operations in Indiana.
Under the CHIPS and Science Act, the US Department of Commerce has finalized a direct subsidy of up to $4.745 billion for Samsung Electronics, supporting the company’s $37 billion investment in Texas. This grant will help Samsung develop a comprehensive semiconductor ecosystem, including constructing two leading-edge logic fabs and an R&D facility in Taylor, along with expanding its existing site in Austin. While the subsidy amount is lower than the previously agreed $6.4 billion, the reduction stems from Samsung’s decision to scale back its investment plans from $44 billion to $37 billion.
This funding is part of Samsung’s broader initiative to strengthen its semiconductor production capabilities in the U.S. With this investment, the US will become the only country globally with all five major semiconductor manufacturers operating within its borders.Â
Samsung’s decision to adjust its investment follows the preliminary agreement established in April. The company had originally committed to investing $45 billion by 2030. However, the revised commitment now stands at $37 billion, leading to the adjusted subsidy amount. The revised funding is expected to create about 12,000 construction jobs and over 3,500 manufacturing roles in Texas over the next five years.
Jun Young-hyun, Vice Chairman of Samsung’s Semiconductor Division, expressed optimism about further collaboration with US partners to meet the growing demands of the AI-driven future. This investment is seen as a significant milestone in reinforcing US economic and national security while supporting the creation of thousands of high-paying jobs nationwide.
