Biden administration to invest $6 billion in Samsung for chip production

The Biden administration is set to announce a substantial investment of more than $6 billion in South Korea’s Samsung next week, aimed at bolstering chip production in Taylor, Texas. The subsidy, to be revealed by Commerce Department Secretary Gina Raimondo, will support the construction of four facilities in Taylor, including a $17 billion chipmaking plant announced by Samsung in 2021, along with additional facilities for advanced packaging and research and development.

The investment marks a substantial expansion of Samsung’s presence in the US, with plans to more than double its investment to over $44 billion. While the Commerce Department and Samsung have refrained from commenting on the matter, sources indicate that this subsidy will rank as the third largest under the program, trailing only Taiwan’s recent $6.6 billion award. This move aligns with the Biden administration’s efforts to boost domestic chip production and counter reliance on foreign manufacturing hubs.

The announcement is part of a broader push to enhance domestic semiconductor output following Congress’s approval of the Chips and Science Act in 2022. With $52.7 billion allocated for research and manufacturing subsidies, the US aims to reduce dependence on China and Taiwan, whose dominance in semiconductor manufacturing has raised concerns about supply chain vulnerabilities. While President Biden is not expected to attend the event, Republican Governor Greg Abbott of Texas has been invited, underscoring the bipartisan nature of efforts to strengthen America’s chipmaking capabilities.