Samsung struggling to get tax subsidy for US chip plant – SamMobile – Samsung news
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Last updated: January 2nd, 2024 at 11:42 UTC+01:00
In 2022, the President of the United States, Joe Biden, signed the CHIPS and Science Act, to boost the manufacturing of semiconductors in the US. Under this act, the US government is supposed to offer $52.7 billion in grants to companies building foundries in the country. Looking at the lucrative incentive, Samsung started building a chip plant in Taylor, Texas, USA with an estimated cost of $17 billion. Unfortunately for the Korean tech giant, things aren’t going as it had planned.
According to a new report from Korea JoongAng Daily, Samsung is struggling to secure grants, which will be offered in the form of tax exemptions, for its upcoming factory in Taylor under the CHIPS and Science Act. A source who is familiar with the matter told the publication “Before the decision was made, the U.S. government assured Samsung of big financial support. But as the actual negotiation goes, the tax benefit was disappointing for Samsung.” “The cost of building the plant keeps on rising,” he added.
Reportedly, Samsung is struggling to secure the grant as there are a lot of competitors fighting for it. According to the source, over 400 companies have expressed interest in the subsidy, including Intel, Micron, and TSMC. Rumors suggest that the US government is favoring Intel under this act, as it is not only a home-grown brand but also supplies chips to the country’s defense agencies. According to Silicon Angle, Samsung is now “lobbying politicians for a more equal distribution of funds that does not favor Intel.”
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