Samsung will receive $6.4 billion in funding from the CHIPS Act to build a $40 billion wafer fab in Texas

Samsung Electronics this week received up to $6.4 billion in grants from the U.S. government under the Chip and Science Act to build its new wafer fab complex in Tyler, Texas. This is the third major award under the bill in the last month, with all three leading fabs — Intel, TSMC and now Samsung — receiving billions of dollars in funding under the domestic chip production program. Overall, the final cost of Samsung’s new factory complex is expected to reach $40 billion when completed later this decade.

Samsung’s CHIPS Act funding was announced during a celebration attended by U.S. Commerce Secretary Gina Raimondo and Samsung Semiconductor CEO Kye Hyun Kyung. At the event, Kyung outlined the strategic goals for the expansion, emphasizing that the additional funding will not only increase production capacity but also strengthen the entire local semiconductor ecosystem. Samsung plans to equip its wafer plant near Tyler, Texas, with the latest fab tools to produce advanced chips. The Financial Times reported that Samsung plans to use 2-nanometer process technology to produce semiconductors from 2026, but this is only unofficial information at the moment.

“I am pleased to announce that Samsung has reached a preliminary agreement with the Department of Commerce to bring Samsung’s advanced semiconductor manufacturing and research and development to Texas,” U.S. President Joe Biden said in a statement. “This announcement will free up Samsung More than $40 billion in investment and solidifying Central Texas’ role as the most advanced semiconductor ecosystem, creating at least 21,500 jobs and leveraging up to $40 million in CHIPS funding to train and develop local facilities These facilities will support the world Producing some of the most powerful chips in the world, which are critical for advanced technologies like artificial intelligence and will enhance U.S. national security.”

Samsung has been a major contributor to the Texas economy for decades, producing chips in the United States since 1996. Previously, Samsung’s total investment in the Austin factory was US$18 billion. This additional investment in the Taylor factory is at least US$17 billion, highlighting its role as a global chip manufacturer. One of the largest foreign direct investors in U.S. history. The total expected investment in the new facility exceeds $40 billion, making it one of the largest greenfield projects in the United States and transforming Tyler into a major center for semiconductor manufacturing.

The CEO highlighted the significant economic impact of Samsung’s business, noting that regional economic output will nearly double from $13.6 billion to $26.8 billion between 2022 and 2023. The continued expansion is expected to further stimulate economic growth, create thousands of jobs, and enhance the overall development of the community.

“We are not only expanding production facilities, but also expanding production scale. We are strengthening the local semiconductor ecosystem and positioning the United States as a global semiconductor manufacturing destination.” Jing said. “To meet the expected surge in demand from U.S. customers for future products such as artificial intelligence chips, our factories will be equipped with cutting-edge process technology and help bring security to the U.S. semiconductor supply chain.”

Samsung is also committed to environmental sustainability and workforce development. The company plans to operate on 100% clean energy and employ advanced water management technology. In addition, it invests in education and training programs to develop a new generation of semiconductor professionals. These initiatives include partnerships with educational institutions and customized programs for veterans.

In his remarks, Jing expressed his gratitude to President Biden, Secretary Raimondo, and other government and community supporters for their continued support. Collaboration between Samsung and all levels of government and local communities is critical to advancing the U.S. semiconductor industry and ensuring its global competitiveness.

“Today’s announcement will help Samsung bring more semiconductor production, innovation and jobs to the United States, strengthening the U.S. economy, competitiveness and critical chip supply chain,” the Semiconductor Industry Association wrote in a statement. “We “We commend Samsung for its bold investment in American manufacturing and salute the U.S. Department of Commerce for making significant progress in implementing the CHIPS Act’s manufacturing incentives and R&D programs. We look forward to continuing to work with government and industry leaders to ensure that the CHIPS Act remains on track.” Help reinvigorate U.S. chip manufacturing and research for many years to come.”

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