Reuters
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The Biden administration will award as much as $6.4 billion in grants to South Korea’s Samsung Electronics to increase its chip manufacturing in central Texas as a part of a broader effort to spice up US chipmaking, the Division of Commerce stated on Monday.
The funding from the 2022 Chips and Science Act will assist two chip manufacturing amenities, a analysis middle and a packaging facility, in Taylor, Texas, the company stated, as beforehand reported by Reuters.
It should additionally allow Samsung to increase its Austin, Texas, semiconductor facility, Commerce Division Secretary Gina Raimondo added, whereas boosting chip output for the aerospace, protection and auto industries and bolstering nationwide safety, administration officers informed reporters.
“(These investments) will permit the US to as soon as once more lead the world, not simply in semiconductor design, which is the place we do now lead, but additionally in manufacturing, superior packaging, and analysis and improvement,” Raimondo stated.
Samsung Electronics Co-CEO Kyung Kye Hyun stated: “To fulfill the anticipated surge in demand from US prospects, for future merchandise like AI chips, our fabs will probably be outfitted for cutting-edge course of applied sciences and assist deliver safety to the US semiconductor provide chain.”
Samsung stated it expects to start manufacturing in 2026. Analysts have estimated the corporate is prone to start making 4-nanometer chips at its pilot manufacturing line and finally increase to 2-nanometer chips.
The announcement, which made Samsung the third-largest Chips Act award recipient, as first reported by Reuters, is the most recent transfer by the Biden administration to construct out the chipmaking trade in america.
The purpose is to scale back reliance on China and Taiwan, because the US share of worldwide semiconductor manufacturing capability has fallen from 37% in 1990 to 12% in 2020, in response to the Semiconductor Trade Affiliation (SIA).
Lawmakers have warned that US dependence on chips manufactured in Taiwan by the world’s prime contract chip producer, TSMC, is dangerous as a result of China claims the self-governed island as its territory and has reserved the fitting to make use of drive to retake it.
“By investing in modern semiconductor manufacturing, we’re serving to safe this susceptible provide chain, boosting our nationwide safety and world competitiveness, and creating new jobs for Texans,” stated John Cornyn, a Republican U.S. senator from Texas who cosponsored the unique laws.
Samsung is anticipated to speculate roughly $45 billion in constructing and increasing its Texas amenities via the top of the last decade, stated senior administration officers.
“We applaud Samsung for investing boldly in US-based manufacturing and salute the US Commerce Division for making important headway in implementing the CHIPS Act’s manufacturing incentives and R&D packages,” SIA stated in an announcement.
Intel gained $8.5 billion in grants final month whereas Taiwan’s TSMC clinched $6.6 billion in April to construct out its American manufacturing.