Samsung gets $6.4 billion in incentives for its semiconductor chip plant in US – SamMobile – Samsung news
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Last updated: April 16th, 2024 at 08:46 UTC+02:00
Last month, it was reported that Samsung could get a $6 billion grant from the US government to build advanced chip factories in the US. The US government has now officially announced that it is offering $6.4 billion in grants to Samsung Electronics for its chipmaking investments in Texas. 
The US government announced earlier today that it plans to offer tax incentives of up to $6.4 billion to Samsung Electronics. The Commerce Department has reached this preliminary agreement with Samsung under the US government’s CHIPS and Science Act. This grant will ease Samsung’s efforts to build two chip plants (Austin and Taylor) in Texas. While the chip plant in Austin is old, the company is building an advanced chip plant in Taylor. Samsung will also build a chip packaging facility and a chip research center.
Local chip production is set to reduce the USA’s reliance on other countries like China, South Korea, and Taiwan. It will also boost local aerospace, automobile, electronics, and defense industries. Samsung Semiconductor CEO Kye Hyun Kyung and Secretary Raimondo held a celebration of the investment. While Samsung said it would fabricate chips using “cutting-edge” technologies at its new plant, it didn’t reveal the actual process nodes for its new chip plants. However, reports claim it will make chips using 4nm or better process nodes.
Samsung said it will boost the local economy by creating thousands of direct and indirect jobs, including 17,000 jobs in construction. Samsung is also partnering with schools and colleges to help create engineers who will join the semiconductor segment. It will also start programs that will help train military veterans to work at its new fabs. The company also plans to use 100% clean energy at its new sites.
Kye Hyun Kyung said, “We’re not just expanding production facilities; we’re strengthening the local semiconductor ecosystem and positioning the U.S. as a global semiconductor manufacturing destination. To meet the expected surge in demand from U.S. customers, for future products like AI chips, our fabs will be equipped for cutting-edge process technologies and help bring security to the U.S. semiconductor supply chain.”
White House National Economic Adviser Lael Brainard said, “The return of leading-edge chip manufacturing to America is a major new chapter in our semiconductor industry.” Biden’s administration has already granted similar tax incentives and sops to competing chip firms, including Intel, Global Foundries, Microchip Technology Inc., and TSMC.
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