President Biden's CHIPS Act appears to be yielding promising results as Samsung prepares to escalate its investment in Texas. According to The Wall Street Journal, the tech giant intends to double its investment in the state's chip-manufacturing sector, elevating the total investment to $44 billion.
President Biden's CHIPS Act appears to be yielding promising results as Samsung prepares to escalate its investment in Texas. According to The Wall Street Journal, the tech giant intends to double its investment in the state's chip-manufacturing sector, elevating the total investment to $44 billion. Samsung had previously allocated nearly $20 billion to establish a factory in 2021.
The forthcoming expansion is anticipated to encompass the establishment of a new chip manufacturing facility, a packaging site, and a research and development space. These facilities will be situated in or near Taylor, Texas, in close proximity to the existing semiconductor facility. Although the current manufacturing hub is not yet operational, it is scheduled to commence production of "crucial logic chips" later this year. For reference, Taylor is situated approximately a 40-minute drive from Austin.
Should this endeavor materialize, it will mark a significant victory for the Biden administration's objectives. A primary objective of the CHIPS Act is to entice global chipmakers to invest in the United States. In furtherance of this goal, Washington intends to grant Samsung over $6 billion to incentivize continued investment in the country.
The CHIPS Act has empowered the federal government to extend funding and loans to numerous tech companies, encouraging domestic investment. For instance, GlobalFoundries received a substantial grant of $1.5 billion in February, supplemented by a $1.6 billion loan, to finance a substantial expansion in the United States. Meanwhile, Intel secured the largest CHIPS grant to date, amounting to up to $8.5 billion, to sustain various US-based operations.
Enacted in 2022, the CHIPS and Science Act aims to bolster domestic semiconductor research and manufacturing
Intel's plan involves utilizing the allocated funds to establish new fabrication facilities in Arizona and Ohio, alongside modernizing existing facilities in New Mexico and Oregon. The company aims to invest a total of $100 billion in US-based chip manufacturing, a move expected to generate significant employment opportunities.
Enacted in 2022, the CHIPS and Science Act aims to bolster domestic semiconductor research and manufacturing, thereby reducing America's dependence on Chinese suppliers. The legislation allocates $52 billion in tax credits and funding to facilitate firms' expansion of domestic production capabilities.
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