Samsung to receive $6.6 billion subsidy for chip plant in Texas

Samsung will receive a $6.6 billion subsidy to help it expand its chip plant in Texas, US, reveals Reuters. This is the latest step of the Biden administration in its efforts to boost chipmaking in the United States.

The subsidy will go towards the construction of four facilities in the American plant, including one $17 billion chipmaking plant, another factory, an advanced packaging facility, and an R&D center.

Commerce Department Secretary Gina Raimondo will unveil the expanded partnership officially next week. The subsidy will also include an investment in another undisclosed location. As part of the deal, Samsung will double its US investment to over $44 billion.

The investment is matching TSMC, which was also awarded $6.6 billion in an agreement to expand its investment by $25 billion to $65 billion and add a third plant in Arizona by 2030. Intel was also awarded $8.5 billion to expand its chip-making business.

The announcement will wrap up a string of major Chips and Science grants, with which the US aims to get back on top in the semiconductor manufacturing business. Reuters quoted one analysis, which revealed that while America manufactured 37% of all semiconductors in 1990, its share in 2020 was only 12%.

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