The US Commerce Department has awarded Samsung Electronics up to $4.745 billion in direct funding to support the South Korean tech giant's chipmaking investment in central Texas, as it strives to strengthen domestic semiconductor production.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The announcement came after the department announced a preliminary deal with Samsung in April to provide up to $6.4 billion in grants under the CHIPS and Science Act, reports Yonhap news agency.

It also announced a final decision to give up to $458 million in direct funding and up to $500 million in loans to another Korean firm, SK hynix, for its investment in Indiana.

The funding will support Samsung's investment of over $37 billion in the coming years to turn its existing presence in central Texas into a comprehensive ecosystem for the development and production of leading-edge chips in the United States, the department said.

Samsung's investment program includes two new leading-edge logic fabs and an R&D fab in Taylor, as well as an expansion to their existing facility in Austin.

"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," Secretary of Commerce Gina Raimondo was quoted as saying in a statement.

"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," she added.

Jun Young-hyun, vice chairman and CEO of Device Solutions Division at Samsung Electronics, expressed hope for further collaboration with U.S. partners to meet the "evolving needs of the upcoming AI-driven era."

"With nearly 30 years of semiconductor manufacturing experience in the United States, we are proud and grateful for the long-standing relationships we have established with our American partners and customers, as well as communities across Texas," Jun said.

"Our agreement with the U.S. Government today under the CHIPS and Science Act represents another milestone as we continue to invest and build a state-of-the-art semiconductor ecosystem in the U.S."

The department said that Samsung's CHIPS investment would support the creation of approximately 12,000 construction jobs and more than 3,500 manufacturing jobs within the next five years, while stimulating regional commercial growth.