According to sources familiar with the matter, the Biden administration is set to make a significant announcement next week, revealing its decision to award South Korea’s Samsung with over $6 billion. This substantial investment aims to facilitate the expansion of Samsung’s chip output in Taylor, Texas, aligning with the administration’s objective to bolster chip manufacturing within the United States.
In addition to the expansion in Texas, the investment will also encompass another undisclosed location, indicating Samsung’s commitment to significantly boost its investment in the U.S. to more than $44 billion. This move underscores Samsung’s strategic alignment with the administration’s goals and signifies a substantial injection of capital into the domestic chipmaking sector.
Both the Commerce Department and Samsung have declined to comment on the matter, while requests for comment from Texas Governor Greg Abbott’s office remain unanswered. However, insiders suggest that this investment from Samsung will mark one of the largest contributions within the program, trailing closely behind Taiwan’s TSMC, which recently received $6.6 billion in funding. TSMC has committed to expanding its investment to $65 billion, including the addition of a third factory in Arizona by 2030.
The forthcoming announcement serves as the culmination of a series of significant grants under the Chips and Science Act, reflecting the administration’s concerted efforts to bolster domestic chip production. By incentivizing major players like Samsung to invest in the U.S., the government aims to redirect capital away from potential investments in China and other regions, thereby strengthening the nation’s semiconductor industry and reducing dependence on foreign sources.
Congress paved the way for such initiatives in 2022 with the approval of the Chips and Science Act, which allocated $52.7 billion in research and manufacturing subsidies to boost domestic semiconductor output. Additionally, lawmakers approved $75 billion in government loan authority to further support these efforts. Notably, while Samsung stands to benefit from the federal investment, sources indicate that the company intends to finance its expansion plans without resorting to loans, signaling a strong commitment to its U.S. operations.
