US Government Awards Billions to Samsung and Texas Instruments for New Semiconductor Plants
Samsung Electronics and Texas Instruments completed final agreements to receive billions of dollars in government support for new semiconductor plants in the US, cementing a major piece of the Biden administration’s Chips Act initiative.
Deal Details
Under binding agreements unveiled on Friday, Samsung will receive as much as US$4.8 billion in funding, while Texas Instruments stands to receive US$1.6 billion. The funding will help the companies build facilities in Texas and Utah.
Samsung’s Agreement
Though the terms of Texas Instruments’ final agreement are in line with a preliminary deal, Samsung is getting substantially less than originally expected. Samsung’s project won’t be as large as originally planned, with the company stating that its mid-to-long-term investment plan has been partially revised to optimize overall investment efficiency.
Chips Act Initiative
The Chips Act, signed into law by President Joe Biden in 2022, set aside US$39 billion in grants, loans, and loan guarantees worth US$75 billion, and 25% tax credits. It aims to boost American semiconductor production after decades of manufacturing shifting abroad.
Impact
The latest awards round out the programme’s biggest grants, helping ensure that there’s comprehensive local production of semiconductors. Texas Instruments is the largest maker of analog chips and embedded processors, while Samsung is the world’s top maker of memory chips and a major provider of advanced outsourced production for other companies.
Project Details
Texas Instruments will use the funding to build three new large plants: two in Sherman, Texas, and one in Lehi, Utah. The project will create 2,000 new positions for the Dallas-based company.
Samsung is expanding its facilities in central Texas, including work on logic chips and a research and design facility in Taylor. The company will also be expanding an existing site in Austin.
Conclusion
The government’s support for Samsung and Texas Instruments is a significant step towards boosting American semiconductor production and ensuring the country’s self-sufficiency in this vital area.
FAQs
Q: What is the Chips Act initiative?
A: The Chips Act is a US government initiative aimed at boosting American semiconductor production after decades of manufacturing shifting abroad.
Q: How much funding will Samsung and Texas Instruments receive?
A: Samsung will receive as much as US$4.8 billion in funding, while Texas Instruments will receive US$1.6 billion.
Q: What will the funding be used for?
A: The funding will be used to build new semiconductor plants in Texas and Utah, creating thousands of new jobs and ensuring comprehensive local production of semiconductors.
Q: Why is the Chips Act initiative important?
A: The Chips Act initiative is important because it aims to ensure the US has a stable and reliable supply of semiconductors, which are critical components in a wide range of industries, including defense, healthcare, and technology.
