Samsung Reportedly Receiving $6B From CHIPS Act For U.S. Expansion
Samsung Electronics appears poised to win a massive federal grant to expand its investments in chipmaking plants in the U.S.
The Commerce Department plans to award the South Korean chip manufacturer $6B through the CHIPS and Science Act of 2022 in the coming weeks, Bloomberg reported, citing anonymous sources.
It would be one of several major manufacturers awarded, as the Commerce Department has set aside $28B in grants to shell out to these companies for their manufacturing projects. Others slated to receive billions of dollars are Taiwan Semiconductor Manufacturing Co., Intel Corp. and Micron Technology, Bloomberg reported.
Samsung didn't respond to Bisnow's request for comment.
The announcement is still pending, and it isn't yet clear where Samsung would invest the money.
The grant would build on Samsung's previous U.S. investments, including a $17B, 7M SF manufacturing plant in Taylor, Texas, which the company selected in 2021 to host the plant.
In 2022, Samsung proposed investing roughly $200B in the U.S. over the next 20 years on 11 chipmaking plants in Texas, The Wall Street Journal reported. In 2023, the chipmaker doubled its economic impact in the state year-over-year, from $13.6B to $26.8B, according to the company.
The pending awards are just the latest in a line of funding the country has doled out to entice more chip manufacturing.
Industrial construction doubled in 2022 in part because of the Inflation Reduction Act and the CHIPS and Science Act. The CHIPS Act unlocked $39B in first-round funding to incentivize the production of chip factories.
