[News] Samsung receives $6.4 billion in subsidies from US government, less than Intel and TSMC

The US government announced on April 15 that it will provide up to $6.4 billion in subsidies to South Korean semiconductor giant Samsung Electronics to expand its production capacity for advanced chips at its Texas factory.

The US government previously approved up to $8.5 billion in subsidies for US semiconductor giant Intel and up to $6.6 billion for TSMC to alleviate future semiconductor supply constraints. Semiconductors are now considered the lifeblood of the global economy.

The Department of Commerce said in a release: “…The U.S. Department of Commerce and Samsung Electronics (Samsung) have signed a non-binding preliminary memorandum of understanding (PMT) to provide up to $6.4 billion in direct funding under the CHIPS and Science Act.”

The statement also said Samsung Electronics “plans to invest more than $40 billion in the region over the next few years, and the proposed investments will support the creation of more than 20,000 jobs.”

U.S. officials told reporters that the Chip and Science Act subsidies will help Samsung Electronics expand chip production for the aerospace, defense and automotive industries and strengthen U.S. national security. Ta.

White House National Economic Council Director Lael Brainard emphasized that the resurgence of advanced chip manufacturing in the United States represents an important milestone for the domestic semiconductor industry.

U.S. Secretary of Commerce Gina Raimondo said the grant will support two chip production facilities, one research and development facility and one advanced packaging facility. She said the grant will also help Samsung expand its semiconductor facility in Austin, Texas.

Raimondo further stated, “…this proposed funding advances America's leadership in semiconductor manufacturing on the world stage.”

Previously, the US government announced that Intel would receive $8.5 billion in federal grants and $11 billion in loans. Intel plans to invest $100 billion in four U.S. states to build and expand factories and is also seeking an additional $25 billion in tax credits.

Meanwhile, the US government plans to provide $6.6 billion in support to TSMC, which plans to build a third chip factory in Arizona with a total investment of $65 billion.

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