This funding forms part of a larger investment in the hub that, when combined with private funds, is anticipated to surpass $40billion.
The Biden administration has struck a deal to provide Samsung with $6.4billion for the development of a computer chip manufacturing and research hub in Texas.
This funding forms part of a larger investment in the hub that, when combined with private funds, is anticipated to surpass $40billion. The government backing stems from the CHIPS and Science Act, which was signed into law by President Joe Biden in 2022 with the aim of rejuvenating domestic production of advanced computer chips.
Commerce Secretary Gina Raimondo said: “The proposed project will propel Texas into a state of the art semiconductor ecosystem. It puts us on track to hit our goal of producing 20% of the world’s leading edge chips in the United States by the end of the decade.”
Raimondo anticipates that the project will generate at least 17,000 construction jobs and over 4,500 manufacturing positions. The planned Samsung hub in Taylor, Texas, will comprise two factories producing four- and two-nanometer chips, a dedicated research and development factory, and a facility for packaging chip components.
The first factory is projected to be up and running by 2026, with the second following suit in 2027, as per government information. The funding will also be used to expand an existing Samsung facility in Austin, Texas.
Lael Brainard, director of the White House National Economic Council, stated that as a result, Samsung will be able to manufacture chips directly for the Defense Department in Austin. This comes as access to advanced technology has become a significant national security concern amid competition between the US. and China.
In addition to the $6.4billion, Samsung has indicated it will also claim an investment tax credit from the US Treasury Department.
The government has previously announced terms to support other chipmakers including Intel and Taiwan Semiconductor Manufacturing Co. in projects spread across the country.
