Biden Administration Approves $6.4 Bil for Samsungs Texas Chip Expansion

The Biden administration has decided to support the tech industry by providing financial help to Samsung. They have agreed to give $6.4 billion to the South Korean company.

This money will be used to build a new facility in Texas that will make computer chips. These chips are important for all kinds of electronic devices, like phones and computers.

This decision is part of a bigger plan to make sure the United States can make more important technology products at home.

On Monday, the Commerce Department announced funding as part of a larger investment in a project that, together with private funds, is likely to surpass $40 billion.

This financial support stems from the CHIPS and Science Act, a law signed by President Joe Biden in 2022 aimed at boosting the domestic production of advanced computer chips.

In addition to the $6.4 billion, Samsung plans to receive an investment tax credit from the U.S. Treasury Department.

This agreement shows how the government and big tech companies are working together to improve America’s tech abilities.

With this investment, Samsung will be able to make advanced computer chips in the U.S. The factory will be in Taylor, Texas. It is one of the largest investments in the American technology manufacturing industry.

Commerce Secretary Gina Raimondo said, “The proposed project will propel Texas into a state of the art semiconductor ecosystem,”

“It puts us on track to hit our goal of producing 20% of the world’s leading edge chips in the United States by the end of the decade.”

Samsung’s new venture in Texas is not only a boost to chip manufacturing but also a major job creator.

According to Raimondo, the project will generate a substantial number of jobs: 17,000 construction jobs and more than 4,500 manufacturing jobs.

With the funding being secured Samsung will start the production in 2026.

The approved $6.4 billion funding will also support the expansion of the existing Austin, Texas, facility.

Lael Brainard, director of the White House National Economic Council, mentioned that thanks to this initiative, Samsung will now be able to make chips in Austin for the Defense Department.

The government has also funded other chipmakers, including Intel and Taiwan Semiconductor Manufacturing Co, in addition to Samsung, to spread the infrastructure across the United States.