The Biden administration has agreed to provide up to $6.4 billion in direct funding to Samsung Electronics for the development of a computer chip manufacturing and research cluster in Texas. This funding, announced by the Commerce Department on Monday, is part of a larger investment in the cluster that is expected to exceed $40 billion with private funds.
The government support comes from the CHIPS and Science Act, signed into law by President Joe Biden in 2022 to boost the domestic production of advanced computer chips. Commerce Secretary Gina Raimondo stated that the proposed project will establish Texas as a state-of-the-art semiconductor ecosystem and help the U.S. reach its goal of producing 20 percent of the world’s leading-edge chips by the end of the decade.
The project, to be located in Taylor, Texas, will include two factories producing four and two-nanometer chips, as well as a research and development facility and a packaging facility for chip components. The first factory is set to begin production in 2026, with the second following in 2027.
In addition to funding for the new plants, the investment will also support the expansion of an existing Samsung facility in Austin, Texas. This expansion will enable Samsung to directly manufacture chips for the Defense Department, addressing national security concerns related to advanced technology competition between the U.S. and China.
Samsung has indicated that it will also claim an investment tax credit from the U.S. Treasury Department in addition to the $6.4 billion in direct funding. The government has previously announced similar support for other chipmakers, including Intel and Taiwan Semiconductor Manufacturing Co., in projects across the country.
