Samsung obtained $6.4 billion below the CHIPS Act to spice up chip manufacturing

The U.S. authorities will give Samsung as much as $6.4 billion in direct financing to spice up its chip manufacturing in Texas, the Commerce Division mentioned Monday.

In alternate, the South Korean expertise big will commit an funding of $45 billion for its two chip manufacturing amenities, one below development in Taylor and one other below development in Austin. Samsung may even construct a further superior packaging plant and analysis heart.

Samsung turns into the third-largest recipient of U.S. funding below the CHIPS and Science Act, which gave the Commerce Division $39 billion to distribute within the type of grants to chipmakers to spice up home chip manufacturing. , particularly newest era chips. Intel obtained $8.5 billion for a $100 billion funding final month, whereas TSMC obtained $6.6 billion for a $65 billion funding final week.

In a press release, Samsung mentioned the grant will enable the corporate to “additional increase in Central Texas and create new manufacturing capabilities and capabilities for important chips for the automotive, shopper expertise, IoT, aerospace and different important industries.” .

“We’re not solely increasing manufacturing amenities; we’re strengthening the native semiconductor ecosystem and positioning the USA as a worldwide semiconductor manufacturing vacation spot,” mentioned Samsung co-CEO Kyung Kye-hyun.

“To fulfill the anticipated improve in demand from US clients for future merchandise reminiscent of AI chips, our factories will likely be outfitted with cutting-edge course of applied sciences and can assist present safety to the US semiconductor provide chain,” he added.

Samsung’s Austin chip manufacturing facility has been in operation since 1996 and homes two chip factories or manufacturing traces, which the corporate has continued to improve since then. Their facility in Taylor started development in 2021. and initially had 17 billion {dollars} allotted. Samsung is anticipated Manufacture superior chips from a 4 nanometer (nm) course of node to a 2 nm node at its amenities in the USA.

In the meantime, the announcement comes as Samsung begins to get well from the disaster within the reminiscence chip market. The corporate mentioned that Working revenue for the primary quarter is anticipated to extend 900%.