The Biden administration is reportedly set to announce an award of between $6 and $7 billion to Samsung in South Korea next week, to expand its chip output in Taylor, Texas. This move is aimed at increasing chipmaking in the United States.
The subsidy will be unveiled by Commerce Department Secretary Gina Raimondo and will go towards constructing four facilities in Taylor, including a $17 billion chipmaking plant, another factory, an advanced packaging facility, and a research and development center. Additionally, an investment in another undisclosed location is expected. Samsung is set to double its U.S. investment to over $44 billion as part of the deal.
The CHIPS Act was approved in 2022 by Congress to reduce reliance on China and Taiwan. The goal is to boost domestic semiconductor output with $52.7 billion in research and manufacturing subsidies. The U.S. share of global semiconductor manufacturing capacity fell from 37% in 1990 to 12% in 2020, according to the Semiconductor Industry Association. While TSMC and Intel will expand production in Arizona, Samsung’s expansion in Texas is seen as less likely to help Biden’s chances in the polls.