This comes after the business declared a significant $44 billion investment in the state.
A preliminary agreement to award grants to Samsung in the amount of up to $6.4 billion as part of the CHIPS Act funding was just revealed by the administration of Vice President Joe Biden. The corporation has committed to spending $44 billion in private investment in the state in order to construct a “semiconductor ecosystem.” This money will be used to supplement the private investment from the company.
This sum of money will be used to complete a campus in Taylor, Texas that is considered to be on the cutting edge of technology. The facility will concentrate on the research and development of advanced logic technologies, manufacturing, and maybe most crucially, packaging. The provision of power, inputs, and outputs is what is meant by the term “packaging” when it comes to chips. As a result of the highly specialized nature of the process, which is normally carried out in another country, even chips manufactured in the United States are required to be transported to another country and then returned to the United States. It is anticipated that the dedicated packaging plant that Samsung has established would alleviate some of these issues and strengthen the supply chain as a whole.
The funds will also be used to expand Samsung’s existing factory in Austin, which is located in the greater Austin area. The Biden administration has suggested that the combination of both facilities will transform “Samsung’s existing presence in Texas into a comprehensive ecosystem for the development and production of leading-edge chips in the United States.” This is due to the fact that Taylor and Austin are only forty minutes away from one another. In addition, the president claims that it will result in 21,500 jobs for Texans, with forty million dollars being set aside for training training.
Because of the CHIPS and Science Act, the federal government now has the right to provide funds and loans to technology companies in order to boost domestic spending. A grant in the amount of $1.5 billion was awarded to GlobalFoundries in February to assist with a significant expansion. Additionally, the company was able to get a loan in the amount of $1.6 billion. The company intends to use this money to construct a new manufacturing plant in Malta, New York, which will produce chips for many different industries, including the automotive, aerospace, defense, and artificial intelligence sectors.
Intel was recently awarded the largest CHIPS grant to date, for a total of up to $8.5 billion, which will be used to support a variety of enterprises located in the United States. Intel intends to put that money toward the construction of several new plants that will produce semiconductor chips for the artificial intelligence business. In Arizona, it is constructing two new fabrication facilities, and in Ohio, it is constructing two more. The financial windfall will also be used by Intel to invest in the modernization of two plants that are already in operation: one in Oregon and one in New Mexico. As a result of the company’s announcement that it will be investing $100 billion in chip manufacturing in the United States, about 30,000 new jobs will be created.
The CHIPS and Science Act was signed into law by President Biden in 2022. The purpose of this legislation was to stimulate local semiconductor research and manufacturing in order to reduce the United States’ dependency on Chinese suppliers. It allots a total of 52 billion dollars in tax credits and assistance for businesses that want to increase their manufacturing within the United States.