Samsung receives $4.7 billion award, but that's nearly $2 billion less than earlier promise
Christmas came early for Samsung as the US Commerce Department is finalizing an award of up to $4.745 billion to the Korean giant to expand its chip production in the US.
This funding, however, comes after a revised investment plan from Samsung, which has scaled back its initial proposal of up to $6.4 billion announced in April. Hence, the tech giant is to get almost $2 billion less.
The award is in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication facilities. CHIPS for America has allocated more than $32 billion of the $36 billion in proposed incentives, with projects across 21 states expected to create over many jobs.
This funding will assist Samsung’s $37 billion investment in expanding its presence in Central Texas, which includes establishing two new advanced logic foundries and an R&D semiconductor fabrication plants in Taylor, alongside an expansion of its existing Austin facility. The funds will be disbursed as Samsung meets specific project milestones.
Young Hyun Jun, Vice Chairman and CEO of Samsung's Device Solutions Division, expressed pride in Samsung's nearly 30 years of semiconductor manufacturing experience in the US.
He emphasized the strong relationships the company has built with American partners, customers, and communities in Texas. Jun also noted that the agreement with the US government under the CHIPS and Science Act marks a significant milestone in Samsung's efforts to build a cutting-edge semiconductor ecosystem in the US, and the company looks forward to further collaboration to meet the demands of the AI-driven future.
Sounds great, but I'd like future Samsung phones to support at least 70W charging speeds. It's not too much to ask, right?
This funding, however, comes after a revised investment plan from Samsung, which has scaled back its initial proposal of up to $6.4 billion announced in April. Hence, the tech giant is to get almost $2 billion less.
This funding will assist Samsung’s $37 billion investment in expanding its presence in Central Texas, which includes establishing two new advanced logic foundries and an R&D semiconductor fabrication plants in Taylor, alongside an expansion of its existing Austin facility. The funds will be disbursed as Samsung meets specific project milestones.
Samsung is advancing its efforts to strengthen US economic and national security by developing future technologies in the United States, the US Department of Commerce said in a press release. The company's substantial investment highlights its long-term commitment to the US, where it has been manufacturing chips since 1996. The CHIPS investment will create about 12,000 construction jobs and over 3,500 manufacturing jobs in the next five years, while also driving regional growth and fostering the development of skilled workers through local academic institutions.
Young Hyun Jun, Vice Chairman and CEO of Samsung's Device Solutions Division, expressed pride in Samsung's nearly 30 years of semiconductor manufacturing experience in the US.
He emphasized the strong relationships the company has built with American partners, customers, and communities in Texas. Jun also noted that the agreement with the US government under the CHIPS and Science Act marks a significant milestone in Samsung's efforts to build a cutting-edge semiconductor ecosystem in the US, and the company looks forward to further collaboration to meet the demands of the AI-driven future.
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