Samsung receives $6.4 billion in CHIPS grants, will boost production in Texas

[midian182]

What just happened? The latest beneficiary of the CHIPS and Science Act has been announced by the Department of Commerce. As expected, the Biden administration is awarding the money to Samsung, which will receive up to $6.4 billion in grants to expand its chip production operations in central Texas.

According to a statement from President Biden, the preliminary agreement between Samsung and the Department of Commerce will bring the Korean firm's advanced semiconductor manufacturing and research and development to Texas.

The deal will result in over $40 billion in investment from Samsung, cementing Texas' role in the advanced semiconductor industry and creating at least 21,500 jobs. There will also be up to $40 million in CHIPS funding used to train and develop the local workforce.

"The return of leading-edge chip manufacturing to America is a major new chapter in our semiconductor industry," said White House National Economic Adviser Lael Brainard.

Commerce Secretary Gina Raimondo said Samsung's CHIPS money will help support two new chip production facilities, a research center and a packaging facility for 2.5D packaging at its new site in Taylor, Texas. The first of the new fabs will start making 2nm chips in 2026, according to a senior US official. The second fab will also make chips based on 2nm and 4nm process nodes

The money will also allow Samsung to expand its semiconductor facility in Austin, Texas, about 20 miles from the Taylor site.

The tech giant is expected to invest around $45 billion in constructing and expanding its facilities in Texas by the end of the decade, according to senior administration officials (via Reuters).

This marks the third large allocation of CHIPS money over the last month. In March, Intel became the biggest beneficiary to date, receiving up to $8.5 billion in direct funding and up to $11 billion in low-interest loans. Team Blue plans to spend $100 billion on constructing new manufacturing plants and expanding existing locations across the US over the next few years.

Earlier this month, the US Commerce Department said it had reached a preliminary agreement with TSMC to award it up to $6.6 billion in grants and $5 billion in loans, money that will be used by the company to build a third manufacturing plant in Arizona. TSMC is also making 2nm chips, at its Arizona factory, but they're not set to go into production until 2028. Unlike Samsung, the Taiwanese company has no plans to bring advanced packaging facilities to the US.

The announcement confirms previous reports that Samsung was next it line to receive billions in grants and loans from the CHIPS act.

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Samsung receives $6.4 billion in CHIPS grants, will boost production in Texas

 

[Disiw]

Smart now Intel, TSMC and Samsung are all present in US/EU.

Goal was to get out of Asia.

 

[Uncle Al]

Overall I think is is a great move, but I hope the US has some way of recouping the investment and not just making this a $$ give away AND I hope there are rules in place that recovers and penalizes any company that fails to meet their goals or just withdraws the investment.

 

[Dimitriid]

Great! That surely means they'll correct some of the dumbest decisions ever done on that level like having Texas be completely off the national power grid right?

Nah who am I kidding, they'll probably pay Samsung to build there, pay Samsung to stay there and let Samsung pay even less than 0 taxes because that's what happens when a State the size of most countries has been kidnapped by gerrymandering (read: popular vote is DNC but Texas weights most of the *!@#* little towns way more to remain a GOP bastion)

 

[human7]

It's all pretty neat! As someone who lives near Austin, I can attest that Samsung has been here for years and didn't need the funding to stay, but I'm glad they got the funding to help expand! This will only further their already numerous expansions. Pretty impressive to drive by their facilities, see all the construction, and imagine what is inside the operational factories.

One of my neighbors, an electrician, told me about some of the work that he did in their factories, but he worked on the buildings before all the fancy chipbuilding equipment came in so only got to see some of it. They had a lot of NDAs to sign and such, not that it mattered too much since most of the equipment wasn't there.

I wish they gave in-person tours. Would love to see even their older tech.

Texas Instruments is also expanding a lot, though they are in Dallas and Utah so I haven't seen their factories in person.

 

[human7]

Samsung pay even less than 0 taxes because that's what happens when a State the size of most countries has been kidnapped by gerrymandering (read: popular vote is DNC but Texas weights most of the *!@#* little towns way more to remain a GOP bastion)

The states compete with each other on taxes. If you want a factory in your state, you don't really have a choice: give a good tax break or someone else will beat you. It would be up to Congress to prohibit such tax breaks as part of regulating interstate commerce/competition, but then you have the global scene to compete in.

As for the weighted voting thing, that's how the whole country's electoral system works, partly as a result of the compromise between states and population, but partly as it was envisioned that landowners and farmers would be the backbone of the country (a fair assessment in the late 1700s). And also the little thing about the Supreme Court not bothering to consider political disenfranchisement something it should dirty its hands with fixing.

 

[Theinsanegamer]

The states compete with each other on taxes. If you want a factory in your state, you don't really have a choice: give a good tax break or someone else will beat you. It would be up to Congress to prohibit such tax breaks as part of regulating interstate commerce/competition, but then you have the global scene to compete in.

As for the weighted voting thing, that's how the whole country's electoral system works, partly as a result of the compromise between states and population, but partly as it was envisioned that landowners and farmers would be the backbone of the country (a fair assessment in the late 1700s). And also the little thing about the Supreme Court not bothering to consider political disenfranchisement something it should dirty its hands with fixing.

Most people are totally ignorant on why the law was written as such. The Founding Fathers realized how terrible rule by the minority went in europe. The minority, in this case, referring to the 1% of land dedicated to cities dictating policy for the 99% of land OUTSIDE the city. The result was a huge group of disenfranchised rural voters, which never ended well.

Look no further then the state of oregon, which is now using satellites to track down small farmers and send them cease and desist letters, telling them they cant farm because groundwater. Absolute insanity.

 

[CBTex]

Great! That surely means they'll correct some of the dumbest decisions ever done on that level like having Texas be completely off the national power grid right?

Nah who am I kidding, they'll probably pay Samsung to build there, pay Samsung to stay there and let Samsung pay even less than 0 taxes because that's what happens when a State the size of most countries has been kidnapped by gerrymandering (read: popular vote is DNC but Texas weights most of the *!@#* little towns way more to remain a GOP bastion)

That is just factually wrong. So wrong in fact, it's probably a lie. In the 2022 governor election, the Republican, Greg Abbot, got 4,437,099 votes to the Democrat, Beto O'Rourke's, 3,553,656 votes.

 

[kiwigraeme]

Overall I think is is a great move, but I hope the US has some way of recouping the investment and not just making this a $$ give away AND I hope there are rules in place that recovers and penalizes any company that fails to meet their goals or just withdraws the investment.

Only 3 goals required votes , federal tax payer money and jobs, You think the people in power really worry after that. US corporations have screwed the public endlessly, many examples , wet bus tickets at most.
Look at how ISP got monopolies with 100% lies , took the money , did nothing , did not provide the service.
Corporate Welfare is a fine Capitalistic institution, and any naysayer is a Dam* pinko Commie , American hating infidel