The size of the investment highlights planned expansion of Samsung in Texas.
Tech giant Samsung has won a $6.4 billion grant to build a semiconductor ecosystem in the US state of Texas. This will strengthen the company’s presence in the state and create new jobs.
The size of the investment highlights Samsung’s planned expansion in Texas. Furthermore, the corporation plans to establish a Taylor campus for sophisticated technology R&D, manufacturing, and packaging. The packaging process includes important functions such as providing power and managing inputs and outputs, and usually done overseas. Samsung’s facility will eliminate the complex process of shipping chips made in the US to other countries and bringing them back.
Expansion of the existing facility in Austin is also among the plans. The Biden administration suggests that combining Taylor and Austin would establish a robust ecosystem for pioneering chip development and manufacture in the US due to their proximity. The expansion is expected to produce 21,500 Texas jobs and give $40 million to education.
The CHIPS and Science Act authorized the federal government to award grants to technology companies and offer loans to encourage domestic spending. GlobalFoundries received a $1.5 billion grant in February to build a new factory in Malta, New York. Moreover, Intel received the largest CHIPS grant ever awarded, snatching up $8.5 billion to continue its various US-based initiatives.
To conclude, by enacting the CHIPS and Science Act in 2022, the Biden administration aims to encourage domestic semiconductor research and production to reduce America’s dependence on Chinese suppliers.
