Samsung Secures $6.4 Billion in Funding to Strengthen US Semiconductor Manufacturing Capabilities and Boost Local Economy

Samsung is set to receive $6.4 billion in direct funding through the United States CHIPS and Science Act to enhance its manufacturing capabilities in the US. The Biden administration is emphasizing the importance of increasing manufacturing in the US to prevent future disruptions, particularly after the pandemic highlighted the risks of relying on East Asia for essential hardware like chips, particularly impacting industries such as phones, computers, and cars.

In attendance at the event was Samsung Semiconductor CEO Kye Hyun Kyung, who expressed that this investment will support the company’s expansion in Central Texas. This investment signifies a move to strengthen the local semiconductor ecosystem and position the US as a global semiconductor manufacturing destination. With over 27 years of experience operating in Texas and having invested $18 billion in the region, Samsung has plans to invest even more with CHIPS and Science Act funding.

With this additional investment, Samsung expects to contribute over $40 billion to the area in the coming years, transforming it into a central hub for cutting-edge US semiconductor manufacturing. This initiative aligns with a broader movement to diversify chip manufacturing in the US and Europe. Given recent conflicts and challenges in global supply chains, enhancing semiconductor manufacturing capabilities domestically appears to be a strategic decision for both countries. This further solidifies Samsung’s commitment to its role in advancing semiconductor technologies while creating jobs and driving economic growth in Texas.