Samsung receives $6.4 billion in funding to boost US semiconductor manufacturing and diversify global supply chains

Samsung has received $6.4 billion in direct funding from the United States through the CHIPS and Science Act to enhance its manufacturing capabilities in the US. This announcement was made by US Secretary of Commerce, Gina Raimondo, at Samsung’s new semiconductor manufacturing facility in Taylor, Texas. The Biden administration is emphasizing the importance of increasing manufacturing in the US to prevent future disruptions.

Samsung Semiconductor CEO Kye Hyun Kyung was present at the event and expressed that this investment will support Samsung’s expansion in Central Texas, enabling it to produce chips for critical industries such as automotive, consumer technology, IoT, aerospace and more. This investment signifies a move to strengthen the local semiconductor ecosystem and position the US as a global semiconductor manufacturing destination. Samsung has been operating in Texas for nearly three decades and over the years has invested $18 billion in the region, with plans to invest even more with CHIPS and Science Act funding.

With this additional investment, Samsung expects to contribute over $40 billion to the area in coming years, transforming it into a central hub for cutting-edge US semiconductor manufacturing. This initiative aligns with a broader movement to diversify chip manufacturing in the US and Europe. Given recent conflicts and challenges in global supply chains, enhancing semiconductor manufacturing capabilities domestically appears to be a strategic decision for both countries. This further solidifies Samsung’s commitment to the region and its role in advancing semiconductor technologies.