Samsung plans $44 billion chip investment in US

Samsung Electronics Co. is gearing up for a major investment of $44 billion in chipmaking in the US, aligning with Washington’s push to revive semiconductor production domestically. Expected to be unveiled in Taylor, Texas, alongside Commerce Secretary Gina Raimondo, the project has expanded significantly from its initial outline. Samsung has secured over $6 billion in US government grants for the venture, with more details to be revealed soon, though specifics could still shift before the official announcement.

This investment is part of the Biden administration’s broader strategy to bolster American chip manufacturing through initiatives like the 2022 Chips and Science Act. The Act aims to counterbalance the dominance of Asian production and address concerns about China’s technological ascent. The Act, which earmarked substantial grants and loan funds, has catalysed private semiconductor investments exceeding $200 billion. Notable beneficiaries include Intel Corp. and Taiwan Semiconductor Manufacturing Co., though it remains uncertain if Samsung will receive additional loan awards.

Samsung’s initiative contributes to Texas’ thriving semiconductor landscape, complementing significant investments from companies like Texas Instruments Inc. While the timeline for the Taylor site’s mass production remains unclear, it adds to the state’s robust ecosystem. Following the forthcoming announcement, a meticulous due diligence phase will ensue, during which Samsung and the Commerce Department will finalise terms. Funding will be disbursed based on construction and production milestones, with adjustment provisions if commitments aren’t met.