The Biden administration has announced that Samsung will receive $6.4 billion in direct funding through the United States CHIPS and Science Act to enhance its manufacturing capabilities in the US. This investment was made public by US Secretary of Commerce, Gina Raimondo, at Samsung’s new semiconductor manufacturing facility in Taylor, Texas.
The announcement comes as the pandemic highlighted the risks of relying on East Asia for essential hardware like chips, particularly affecting industries such as phones, computers, and cars. To prevent future disruptions, the Biden administration is emphasizing the importance of increasing manufacturing in the US.
In attendance at the event was Samsung Semiconductor CEO Kye Hyun Kyung, who expressed that this investment will support the company’s expansion in Central Texas, enabling it to produce chips for critical industries such as automotive, consumer technology, IoT, and aerospace. This move signifies a commitment to strengthening the local semiconductor ecosystem and positioning the US as a global semiconductor manufacturing destination.
Samsung has been operating in Texas for nearly three decades and over the years has invested $18 billion in the region. With this additional investment from the CHIPS and Science Act funding, Samsung expects to contribute over $40 billion to the area in coming years and transform it into a central hub for cutting-edge US semiconductor manufacturing. This initiative aligns with a broader movement to diversify chip manufacturing in both Europe and North America. Given recent conflicts and challenges in global supply chains, enhancing semiconductor manufacturing capabilities domestically appears to be a strategic decision for both countries.
Overall, Samsung’s commitment to investing heavily into its operations is an important step towards securing national security interests while also creating job opportunities within local communities.
With this significant investment from Samsung Semiconductor Corporation (SSC), we can expect an influx of new jobs that will positively impact local communities’ economies.
The announcement marks another milestone towards building a more secure and resilient semiconductor industry that benefits not only American consumers but also other countries worldwide.
As SSC continues to expand its operations globally while investing heavily here in Texas, we can anticipate more advancements that will drive innovation forward while supporting domestic industries’ growth.
