Samsung Electronics will receive up to $4.745 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication facilities. Announced today, the U.S. Department of Commerce funding will support Samsung’s planned investment of over $37 billion to transform its existing presence in Central Texas into a comprehensive ecosystem for the development and production of leading-edge chips in the U.S. This includes two new leading-edge logic fabs and an R&D fab in Taylor, as well as an expansion to the company’s existing Austin facility.
“With this investment in Samsung, the U.S. is now officially the only country on the planet that is home to all five leading-edge semiconductor manufacturers,” said U.S. Secretary of Commerce Gina Raimondo. “This is an extraordinary achievement, which will ensure we have a steady, domestic supply of the most advanced semiconductors that are essential to AI and national security, while also creating tens of thousands of good-paying jobs and transforming communities across the country. Thanks to the bipartisan CHIPS and Science Act, we are unleashing the next generation of innovation, protecting our national security, and enhancing our global economic competitiveness.”
Samsung has been manufacturing chips in the U.S. since 1996, and its growth will help strengthen U.S. economic and national security and increase the resilience of both the U.S. and global semiconductor supply chains. The CHIPS investment will support the creation of approximately 12,000 construction jobs and more than 3,500 manufacturing jobs within the next five years, while stimulating regional commercial growth, leveraging the robust two-year and four-year academic footprint in the state to produce the skilled workers needed to fill the critical roles created by the investment.
“With nearly 30 years of semiconductor manufacturing experience in the United States, we are proud and grateful for the long-standing relationships we have established with our American partners and customers, as well as communities across Texas,” said Young Hyun Jun, Vice Chairman and CEO of Device Solutions Division at Samsung Electronics. “Our agreement with the U.S. Government today under the CHIPS and Science Act represents another milestone as we continue to invest and build a state-of-the-art semiconductor ecosystem in the U.S. We look forward to further collaboration with our American partners to meet the evolving needs of the upcoming AI-driven era.”
CHIPS for America will distribute direct funding to recipients for capital expenditures based on completion of construction, production, and commercial milestones. The program will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions.
