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Home » U.S. to award Samsung up to $6.6 billion chip subsidy for Texas expansion: Reuters

U.S. to award Samsung up to $6.6 billion chip subsidy for Texas expansion: Reuters

The United States government has announced that it will award Samsung Electronics Co Ltd up to $6.6 billion in subsidies to support the expansion of its semiconductor manufacturing facilities in Texas. The decision comes as part of a larger effort to strengthen domestic chip production and reduce the country’s reliance on foreign suppliers.

According to Reuters, the subsidy will be provided through the American Jobs Plan, a major infrastructure proposal put forth by President Joe Biden. The plan aims to boost U.S. manufacturing and create more well-paying jobs in key industries, including semiconductor production.

Samsung’s expansion in Texas is expected to create thousands of new jobs and significantly increase the company’s capacity to produce advanced semiconductor chips. The facility will focus on manufacturing cutting-edge technologies such as 5G and AI chips, which are essential components in a wide range of electronic devices, including smartphones, laptops, and autonomous vehicles.

The subsidy is seen as a strategic investment in U.S. national security, as semiconductor chips are critical to the functioning of modern society and play a key role in defense systems, communication networks, and other essential infrastructure. By supporting domestic chip production, the U.S. government aims to reduce the risk of supply chain disruptions and ensure a stable and secure supply of semiconductors for critical industries.

Samsung’s decision to expand its manufacturing operations in Texas is a significant vote of confidence in the U.S. as a global leader in semiconductor production. The company joins a growing list of tech companies that are investing in domestic chip manufacturing, including Intel, TSMC, and GlobalFoundries.

Overall, the subsidy awarded to Samsung represents a major milestone in the U.S. government’s efforts to bolster domestic semiconductor production and secure the country’s position as a leader in advanced chip manufacturing. With the support of the American Jobs Plan, Samsung’s expansion in Texas is expected to have a positive impact on the U.S. economy and create new opportunities for American workers in the high-tech industry.