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Samsung doubles Semiconductor investment in Texas to $44B

Samsung Invests in Texas

President Biden’s CHIPS Act is proving successful as Samsung intends to double its investment in Texas, as reported by The Wall Street Journal. This move will boost the chip-manufacturing sector in the state to a total investment of $44 billion, building upon the nearly $20 billion already invested in a factory back in 2021.

The expansion plans include a new chip manufacturing facility, a packaging site, and a research and development space, all situated in or near Taylor, Texas, where the existing semiconductor facility is located.

Although the current hub is not yet operational, it is slated to begin producing “crucial logic chips” later this year. For those unfamiliar with the geography, Taylor is approximately a 40-minute drive from Austin.

If this expansion comes to fruition, it would be a significant achievement for the Biden administration. One of the primary objectives of the CHIPS Act is to entice global chipmakers to establish a presence on American soil. As part of this effort, Washington intends to grant Samsung over $6 billion as a further incentive to continue investing in the United States.

The CHIPS Act has enabled the federal government to provide funding and loans to numerous tech companies, encouraging domestic investment.

In February, GlobalFoundries, a multinational semiconductor company, received a $1.5 billion grant and a $1.6 billion loan to support a major expansion in Malta, New York, focusing on chip manufacturing for various industries.

More recently, Intel secured the largest CHIPS grant to date, receiving up to $8.5 billion to sustain its US-based operations. Intel plans to utilize these funds to build new fabrication facilities in Arizona and Ohio, modernize existing facilities in New Mexico and Oregon, and invest a total of $100 billion in US chip manufacturing. These projects are expected to create thousands of construction and manufacturing jobs.

The CHIPS and Science Act, signed into law in 2022, aims to bolster domestic semiconductor research and manufacturing while reducing dependence on Chinese suppliers. It allocates $52 billion in tax credits and funding to incentivize firms to expand production within the United States.

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