Samsung has recently received $6.4 billion in direct funding from the United States through the CHIPS and Science Act to enhance its manufacturing capabilities in the US. This announcement was made by US Secretary of Commerce, Gina Raimondo, at Samsung’s new semiconductor manufacturing facility in Taylor, Texas. The Biden administration is emphasizing the importance of increasing manufacturing in the US to prevent future disruptions, as highlighted by the pandemic which exposed the risks of relying on East Asia for essential hardware like chips, particularly affecting industries such as phones, computers, and cars.
Samsung Semiconductor CEO Kye Hyun Kyung was present at the event and expressed that this investment will support the company’s expansion in Central Texas, enabling it to produce chips for critical industries such as automotive, consumer technology, IoT, aerospace, and more. This move signifies a commitment to strengthening the local semiconductor ecosystem and positioning the US as a global semiconductor manufacturing destination. Samsung has been operating in Texas for nearly three decades and over the years has invested $18 billion in the region. With this additional funding from the CHIPS and Science Act, Samsung expects to contribute over $40 billion to the area in the coming years and transform it into a central hub for cutting-edge US semiconductor manufacturing.
This initiative aligns with a broader movement to diversify chip manufacturing in both Europe and America due to recent conflicts and challenges in global supply chains. Enhancing domestic semiconductor manufacturing capabilities appears to be a strategic decision for both regions as they seek self-reliance and advancement of their technological industries. This further solidifies Samsung’s commitment to expanding its operations in Texas and playing an important role in advancing semiconductor technologies on a global scale.