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US to Grant Samsung $6.6 Billion Subsidy for Texas Semiconductor Plant Expansion

Last Updated on 09th April 2024

The United States government has announced a substantial subsidy of USD 6.6 billion to Samsung Electronics for the expansion of its semiconductor project in Texas. Samsung Electronics is one of the world's leading global semiconductor manufacturers. The subsidy will facilitate the development of four facilities in Taylor, Texas, which include the USD 17 billion Taylor Semiconductor Manufacturing Plant.


US to Grant Samsung $6.6 Billion Subsidy for Texas Semiconductor Plant Expansion

 

Furthermore, as part of the deal, Samsung will invest more than USD 44 billion in semiconductor projects in the US.  The expansion of the Texas plant is expected to create thousands of jobs, contributing to the local economy. It will also enhance Samsung's production capacity, enabling the company to meet the growing demand for semiconductors. Moreover, the expanded facility will focus on the production of advanced chips, which are crucial for emerging technologies.

 

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The semiconductor industry is a critical sector for the US economy, powering a wide range of industries from technology to automotive. However, the country has been grappling with a severe chip shortage, which has disrupted various sectors and underscored the need for a robust domestic semiconductor industry. The subsidy to Samsung is a strategic move to address this issue and ensure a steady supply of semiconductors.


 

The US government’s decision to grant the subsidy reflects its commitment to fostering innovation and maintaining technological leadership. It also signals a shift in policy towards encouraging domestic production and reducing dependence on foreign suppliers. Recently, the US government granted substantial subsidies to Intel and TSMC.

 

Read: TSMC to Invest $65 Billion for the Development of Semiconductor Factories in Arizona, USA

 

Samsung's Investment in Texas: An Overview

 

Samsung is making a massive investment in the US, focusing on semiconductor manufacturing. Here's a quick rundown:

 

Initial Presence

Samsung established its presence in Texas in 1996 with a semiconductor fabrication plant in Austin. Since then, Samsung Austin Semiconductor has invested more than USD 18 billion in its Austin campus.

 

Expansion in Austin

In 2022, Samsung's Austin manufacturing site contributed USD 9.3 billion to the local economy and provided $912 million in workers’ salaries. The Austin site supports 14,312 jobs in the area.

 

Investment in Taylor

In late 2021, Samsung announced a $17 billion investment to build a new semiconductor manufacturing facility in Taylor, Texas. This facility is expected to come online next year.

 

Doubling Investment

Samsung is planning to double its semiconductor investment in Texas to around $44 billion. This additional investment is focused on Taylor, Texas, where the company is establishing a second semiconductor hub.

 

For further details, explore our in-depth database about upcoming and ongoing US semiconductor projects.

 

Read:  Intel to Invest $100 Billion to Develop Semiconductor Fabs Across Four States in USA

 

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