Science & Technology

Samsung Reportedly to Hike Texas Chip Spending

The media reports that Samsung Electronics Co. plans to increase investment in Texas by $44 billion.

Samsung Reportedly to Hike Texas Chip Spending

Journalists published the mentioned information with reference to insiders who are aware of the intentions of the specified South Korean manufacturer.

According to preliminary data, Samsung will focus its additional investments in the city of Taylor, where the company is currently building a semiconductor plant next to operating production facilities. Insiders report that the South Korean manufacturer plans to build another factory for making microcircuits and an advanced packaging hub.

If Samsung’s intentions are realized, it will be a significant victory for the administration of the President of the United States Joe Biden, which is currently striving to develop chip production in the US through government support measures and the use of an incentive strategy. In March, the media reported that Washington plans to provide more than $6 billion in financing to the South Korean manufacturer. According to journalists, these funds are intended to help Samsung expand its operations in Texas beyond the initial project.

In 2021, the South Korean manufacturer announced the implementation of a $17 billion project in Taylor, which is located about 40 minutes from Austin.

In 2022, Joe Biden signed the Chips and Science Act. Under this law, Washington can provide financing and offer loans to technology companies. In this case, the main goal is to establish an advanced cutting-edge chip manufacturing system in the United States.

Chips and Science Act has already demonstrated itself in action. In February, multinational semiconductor company GlobalFoundries received a $1.5 billion grant in addition to a $1.6 billion loan. This firm intends to build a factory in Malta, New York. The factory will produce chips for artificial intelligence systems, the defense industry, the automotive area, and the aerospace sector.

Intel has received a grant for the development of microcircuits. In this case, the amount of state financial support is about $8.5 billion. The company plans to spend money on the construction of factories for the production of advanced chips, including for use in artificial intelligence systems. Intel is already building two plants each in Arizona and Ohio. Moreover, the company intends to direct part of the money to modernize two already functioning factories in New Mexico and expand the production site in Oregon.

As we have reported earlier, Samsung Forecasts Jump in Profit.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.