Because of the CHIPS Act, it is constructing a hub for packaging and another factory.
It would appear that the benefits of President Biden’s CHIPS Act are beginning to materialize. The Wall Street Journal has discovered that Samsung intends to increase the amount of money it invests in the state of Texas by a factor of two. Because Samsung already spent roughly $20 billion to construct a facility in 2021, this will increase the overall investment in the state’s chip-manufacturing sector to $44 billion. This is because Samsung has already invested in the sector.
Reportedly, the ambitious expansion will be carried out in the shape of a new chip manufacturing plant, a packaging site, and a space dedicated to research and development. It will all be situated in or close to Taylor, Texas, because that is the location where the semiconductor facility that was already in existence was constructed. The manufacturing hub that is currently in operation is not yet active, but it will start producing “crucial logic chips” later on in this entire year. In the event that you are geographically challenged, Taylor is around forty minutes away from Austin by car.
If this turns out to be true, it will be a significant victory for the administration of Vice President Joe Biden. After all, one of the primary objectives of the CHIPS Act is to entice chip manufacturers from around the world to construct their facilities in the United States. As a further incentive to keep things going smoothly in the good old United States of America, the government of the United States intends to award Samsung more than six billion dollars.
Since the passage of the CHIPS Act, the federal government has been able to provide money and loans to a large number of technology companies in order to boost domestic expenditure. In February, the worldwide semiconductor business GlobalFoundries was awarded a grant of $1.5 billion to assist in the financing of a significant expansion in the United States. Additionally, the company was also granted a loan of $1.6 billion. In Malta, New York, the company intends to construct a new fabrication plant that will be responsible for the production of chips for the automotive, aerospace, defense, and artificial intelligence industries simultaneously.
In more recent times, Intel has been awarded the largest CHIPS grant to date, which amounts to up to $8.5 billion, in order to maintain a variety of activities situated in the United States. As of right now, Intel intends to put that money toward the construction of manufacturing plants that produce cutting-edge semiconductor chips that are intended for use in artificial intelligence and other advanced applications. A total of four new fabrication facilities are being constructed by the business, two in Ohio and two in Arizona. The company also plans to utilize the funds to expand one of its locations in Oregon and update two of its existing manufacturing facilities in the state of New Mexico. Intel plans to invest a total of one hundred billion dollars on the manufacturing of chips in the United States. Ten thousand manufacturing employment and twenty thousand construction jobs are anticipated to be created as a result of the various initiatives.
The CHIPS and Science Act was passed into law by the administration of Vice President Joe Biden in 2022. The purpose of this legislation was to encourage local semiconductor research and manufacturing and to reduce the United States’ dependency on Chinese suppliers. It reserves $52 billion in tax credits and financing for businesses who want to increase their manufacturing within the United States.