The funds are allocated through the Creating Helpful Incentives to Produce Semiconductors and Science Act, following the signing of a preliminary memorandum of terms in April. The funds will be released to Samsung based on the completion of project milestones.
Two-minute impact
The funds, from the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication facilities, will support the company’s efforts to invest more than $37 billion over the coming years to turn Central Texas into a comprehensive ecosystem for development and production of chips in the United States, according to the release.
The funds will support Samsung in bringing two new “logic fabs,” or semiconductor chip fabrication plants, and a research and development plant to Taylor, Texas. Funds will also support an expansion to the existing facility in Austin.
Dig deeper
Samsung has been manufacturing chips in the U.S. since 1996, and the new money from the CHIPS act is expected to support the creation of around 12,000 construction jobs and 3,500 manufacturing jobs in the next five years, according to the release.
Quote of note
“With this investment in Samsung, the U.S. is now officially the only country on the planet that is home to all five leading-edge semiconductor manufacturers,” U.S. Secretary of Commerce Gina Raimondo is quoted in the release. “This is an extraordinary achievement, which will ensure we have a steady, domestic supply of the most advanced semiconductors that are essential to AI and national security, while also creating tens of thousands of good-paying jobs and transforming communities across the country.”
