Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

US Grants Samsung $6.6 Billion Boost

Wed 10 Apr 2024 | 11:46 AM
Israa Farhan

The administration of US President Joe Biden is set to announce next week a grant of over $6 billion to South Korean company Samsung, aimed at expanding its chip production in Taylor, Texas, as part of its efforts to increase semiconductor manufacturing in the United States.

The support, to be revealed by Commerce Secretary Gina Raimondo, will go towards building four facilities, with Samsung expected to more than double its investments in the United States to over $44 billion as part of the deal, according to Reuters.

Approval was given for Samsung to receive $7.5 billion in the form of a government loan, but one source stated that Samsung plans not to take any loans.

The chip law aims to reduce reliance on China and Taiwan, where America's share of global chip-making capacity dropped from 37% in 1990 to 12% in 2020, according to the Semiconductor Industry Association.

The move underscores efforts by the Biden administration to boost domestic semiconductor production and address supply chain vulnerabilities.

With the global semiconductor shortage impacting various industries, increasing domestic production is seen as critical to ensuring national security and economic stability.

The funding for Samsung's expansion in Texas reflects broader efforts to strengthen the U.S. semiconductor industry, create jobs, and enhance America's technological competitiveness on the global stage.