President Biden’s CHIPS Act is yielding positive results as Samsung reportedly plans to double its investment in Texas, as per The Wall Street Journal. This expansion will boost the state’s chip-manufacturing sector with an additional $44 billion, building upon the nearly $20 billion already invested in a factory established in 2021.
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The proposed expansion entails the establishment of a new chip manufacturing facility, a packaging site, and a research and development centre, all situated in or near Taylor, Texas, where the existing semiconductor facility is located. Although the current manufacturing hub is not yet operational, it is scheduled to commence production of “crucial logic chips” later this year. Taylor is approximately a 40-minute drive from Austin.
If realized, this development would mark a significant achievement for the Biden administration, aligning with the CHIPS Act’s objective to attract global chipmakers to invest in the United States. To incentivize Samsung’s continued investment, Washington plans to allocate over $6 billion to the company.
Under the CHIPS Act, the federal government has been offering funding and loans to various tech companies to promote domestic expenditure. For instance, GlobalFoundries received a $1.5 billion grant and a $1.6 billion loan in February to support a major expansion in Malta, New York, focusing on chip manufacturing for automotive, aerospace, defines, and AI industries.
Similarly, Intel secured the largest CHIPS grant to date, amounting to up to $8.5 billion, to sustain its US-based operations. Intel intends to utilize this funding to construct two new fabrication facilities in Arizona and two in Ohio, modernize existing fabs in New Mexico, and expand a facility in Oregon. The company’s total investment in US-based chip manufacturing is expected to reach $100 billion, generating approximately 20,000 construction and 10,000 manufacturing jobs.
The CHIPS and Science Act, signed into law in 2022 by the Biden administration, aims to promote domestic semiconductor research and manufacturing while reducing reliance on Chinese suppliers. It allocates $52 billion in tax credits and funding to encourage firms to expand their production within the United States.
