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Biden's $6.4 Billion Grant to Samsung
The Announcement
- The Biden administration plans to give up to $6.4 billion in grants to Samsung Electronics to expand chip production in central Texas.
- This initiative is part of the 2022 Chips and Science Act, aiming to boost US chip manufacturing.
What the Funds Support
- The grants will back two chip production facilities, a research center, and a packaging facility in Taylor, Texas.
- Samsung will also expand its semiconductor facility in Austin, Texas, enhancing chip output for aerospace, defense, and auto industries.
Importance Stressed by Officials
- Secretary Gina Raimondo emphasizes the importance of leading in semiconductor design and manufacturing.
- Samsung's Co-CEO Kyung Kye Hyun highlights the contribution to future products like AI chips and securing the US semiconductor supply chain.
Timeline and Technology
- Samsung plans to start production in 2026, possibly with 4-nanometer chips, aiming to expand to 2-nanometer chips later.
- Analysts estimate Samsung's investment in Texas to be around $45 billion by the end of the decade.
National Security Concerns
- The move aims to reduce reliance on China and Taiwan for chip manufacturing.
- Lawmakers stress the importance of securing the semiconductor supply chain for national security.
Reaction and Previous Grants
- Samsung becomes the third-largest recipient of Chips Act awards.
- Intel received $8.5 billion in grants, while TSMC got $6.6 billion for its US production expansion.
Sources: Reuters, Semiconductor Industry Association
