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Biden Secures $40B Semiconductor Investment, More Than 20,000 Jobs for Texas

President Joe Biden has announced a significant achievement in semiconductor manufacturing as part of a broader initiative to rejuvenate American technological infrastructure and reduce dependence on foreign chip production.

The Biden administration has successfully negotiated a preliminary agreement with South Korean tech giant Samsung. 

This deal is set to channel up to $6.4 billion in direct funding from the 2022 CHIPS and Science Act into establishing a new semiconductor manufacturing hub in Texas.

Enacted in 2022, the CHIPS and Science Act is central to Biden’s strategy to restore America’s prowess in semiconductor manufacturing. 

Credits: DepositPhotos

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The Act aims to bolster domestic production capacities that are crucial for both commercial and military applications.

The agreement promises to inject over $40 billion in investments from Samsung into central Texas, establishing the region as a cutting-edge semiconductor ecosystem. 

This venture is expected to create at least 21,500 jobs and includes substantial investments in local workforce training.

Samsung plans to construct two major factories in Taylor, Texas, which will produce advanced four- and two-nanometer chips. 

Credits: DepositPhotos

Production is scheduled to begin in 2026 and 2027, respectively. 

Additional facilities for research and development and chip packaging will support the manufacturing operations.

In addition to the new factories, the funding will also enhance Samsung’s existing semiconductor operations in Austin, Texas, further solidifying the state’s position as a high-tech hub.

This initiative is part of a larger federal effort funded through the CHIPS Act, which allocates approximately $53 billion in subsidies to stimulate the U.S. semiconductor industry.

Credits: DepositPhotos

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U.S. Commerce Secretary Gina Raimondo highlighted the strategic importance of the project, noting that it aligns with national goals to secure 20% of global leading-edge semiconductor production by the end of the decade.

President Biden emphasized the shift of chip manufacturing to Asia over recent decades, despite America’s role in developing leading-edge technology. 

“Even though we invented the most advanced chips, we make zero percent of them today,” he said, while on a visit to Arizona. 

Credits: DepositPhotos

Biden continued, “Nearly all manufacturing of leading-edge chips across the entire industry moved overseas to Asia years ago.”

This project aims to redirect critical manufacturing capabilities back to U.S. soil.

The deal is seen as a pivotal move in strengthening the U.S. technology sector against potential supply chain disruptions and enhancing national security. 

The administration continues to pursue similar partnerships to reinforce America’s industrial and technological landscape.

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Monica Balmes is a talented copywriter with a passion for creating engaging and informative content.