Samsung Set to Receive More Than $6 Billion in US Chip Subsidies in 2024

The South Korean tech giant Samsung Electronics is poised to receive a substantial chip subsidy from the United States government under the CHIPS Act. According to multiple reports, the Biden administration plans to award Samsung between $6 billion and $7 billion to expand its semiconductor production in Taylor, Texas.

Details of the Subsidy

This subsidy package for Samsung is expected to be the third-largest under the CHIPS Act, following the $6.6 billion awarded to Taiwan Semiconductor Manufacturing Company (TSMC) and the substantial amount allocated to Intel. The funds are aimed at bolstering domestic chip manufacturing capabilities in the US and reducing reliance on overseas suppliers.

Samsung’s Expansion Plans

Samsung had previously announced a $17 billion investment in a new chip plant in Taylor, and this subsidy will likely support further expansion of the company’s semiconductor operations in the region. The South Korean tech giant is a major player in the global chip market, and its increased US presence aligns with the Biden administration’s goals of reshoring critical technology supply chains.

Impact on the Semiconductor Industry

The CHIPS Act subsidies are part of the US government’s broader efforts to revitalize the domestic semiconductor industry and maintain technological leadership. By incentivizing companies like Samsung and TSMC to establish or expand their manufacturing footprint in the country, the US aims to reduce its reliance on foreign suppliers and strengthen its position in the global chip market.

Conclusion

The substantial subsidy package for Samsung underscores the US government’s commitment to nurturing domestic chip production capabilities. As a leading player in the semiconductor industry, Samsung’s expanded operations in Texas are expected to contribute significantly to the nation’s technological and economic goals.