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Biden Admin Awards Samsung $6.4B for Chip Plant in Texas

Samsung Electronics has been granted up to $6.4 billion by the U.S. government to construct chip-making facilities in Texas. 

This move is part of the Biden administration’s effort to strengthen semiconductor manufacturing in the country.

The grant will be used by Samsung to boost its investment in Taylor, Texas, located outside Austin. 

This will increase Samsung’s investment to around $45 billion, allowing the establishment of another chip-making factory, an advanced chip-packaging facility, and research-and-development capabilities, according to the Commerce Department.

Credits: DepositPhotos

Samsung’s projects are expected to create significant job opportunities, including 17,000 construction jobs and 4,500 manufacturing jobs, which will help generate employment in the region.

The Chips Act initiative is providing the funding for Samsung, which aims to revitalize semiconductor manufacturing in the U.S. 

The initiative is a cornerstone of the Biden administration’s industrial policy, aimed at reinforcing national security and economic growth through domestic production.

Commerce Secretary Gina Raimondo emphasized the need to reduce reliance on foreign production and secure domestic capabilities, highlighting the vulnerability of the U.S. chip supply chain.

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Credits: DepositPhotos

As the world’s largest memory chip maker and a significant player in contract chip manufacturing, Samsung’s investment in Texas underlines its commitment to expanding its presence in the U.S. semiconductor market.

Samsung’s chip-making plants in Taylor will produce some of the most advanced chip technologies in the world, including 4-nanometer and 2-nanometer chips, which are essential for various industries such as consumer electronics and artificial intelligence.

Moreover, Samsung’s advanced chip-packaging facility will specialize in high-bandwidth memory (HBM) 3-D packaging, a critical component in AI computing. 

The facility will also use 2.5-D packaging technologies to enhance chip system performance.

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Credits: DepositPhotos

Samsung’s integrated capabilities in memory production, foundry services, and advanced packaging solutions position it as a key player in the AI chip market. 

The company aims to offer comprehensive solutions to streamline the production process and meet industry demands.

The federal funding will not only support Samsung’s chip-making facilities but also facilitate expansions in its Austin chip factories, which will benefit industries such as aerospace, defense, and automotive.

The U.S. aims to significantly increase its share of the world’s most advanced logic chips by 2030 with the disbursement of funds under the Chips Act. 

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Malik is a skilled writer with a passion for news and current events. With their keen eye for detail, they provide insightful perspectives on the latest happenings. Stay informed and engaged!