Samsung Electronics is preparing to unveil plans to invest 44 billion US dollars in chip production in the US as soon as next week. This is a landmark project in the context of Washington's efforts to bring semiconductor production back to the US.
According to people familiar with the matter, the world's largest memory chip maker plans to share the outline of this Taylor project in Texas with US Secretary of Commerce Gina Raymondo. They said that Samsung Electronics has finalized more than 6 billion US dollars in US government subsidies, and its investment expenditure has increased dramatically to 44 billion US dollars over many years. The timing and details of the announcement plan may still change. Due to discussions on undisclosed matters, people familiar with the matter requested anonymity.
In 2021, the company announced an investment of $17 billion in a project in Taylor, not far from the existing Samsung factory in Austin.
The Biden administration is using the 2022 “CHIPS and Science Act” to provide businesses with billions of dollars in subsidies in an attempt to revive America's chip manufacturing industry.
The law provides for $39 billion in grants, plus $75 billion in loans and guarantees, and has already stimulated more than $200 billion in private sector semiconductor investments. Intel received nearly $20 billion in subsidies and loans. TSMC received $11.6 billion. It's unclear whether Samsung will receive a loan in addition to more than $6 billion in government grants.