The Biden administration has secured an agreement to provide up to $6.4 billion in direct funding to Samsung Electronics for the development of a computer chip manufacturing and research cluster in Texas. This funding, announced by the Commerce Department, is part of a larger investment in the cluster that is expected to exceed $40 billion when combined with private funds. The support from the government stems from the CHIPS and Science Act signed into law by President Joe Biden in 2022, aimed at revitalizing advanced computer chip production within the United States.
The proposed project in Taylor, Texas, by Samsung aims to establish a cutting-edge semiconductor ecosystem. Commerce Secretary Gina Raimondo highlighted that this initiative aligns with the goal of producing 20% of the world's leading-edge chips domestically by the end of the decade. The project is anticipated to generate over 17,000 construction jobs and more than 4,500 manufacturing positions.
The cluster in Texas will feature two factories producing four- and two-nanometer chips, along with a dedicated research and development facility and a packaging facility for chip components. Production is slated to commence in 2026 for the first factory and in 2027 for the second, with an expansion of an existing Samsung facility in Austin also included in the plans.
Furthermore, the project will enable Samsung to manufacture chips directly for the Defense Department in Austin, addressing national security concerns related to advanced technology access amid U.S.-China competition. In addition to the $6.4 billion in funding, Samsung intends to claim an investment tax credit from the U.S. Treasury Department.
Notably, the government has previously outlined support terms for other chipmakers like Intel and Taiwan Semiconductor Manufacturing Co., with projects spanning across the country.
