The Biden administration has approved a $6.4 billion investment in Samsung Electronics to establish a computer chip manufacturing and research cluster in Texas. This funding is part of a $40 billion total investment in the cluster, with private funds also involved. The initiative is supported by the CHIPS and Science Act signed into law by President Joe Biden in 2022 to boost advanced computer chip production in the U.S.
The project, located in Taylor, Texas, is projected to create over 17,000 construction jobs and more than 4,500 manufacturing jobs. Samsung’s cluster will house two factories producing cutting-edge four- and two-nanometer chips, as well as a research and development facility and a packaging unit for chip components. The first factory is slated to begin operations in 2026, followed by the second in 2027.
Furthermore, the funding will facilitate the expansion of an existing Samsung facility in Austin, Texas, where chips will be manufactured for the Defense Department. Samsung will also be eligible for an investment tax credit from the U.S. Treasury Department as part of the agreement.
This development adds to the government’s efforts to bolster domestic chip production, with previous support announced for other industry leaders like Intel and Taiwan Semiconductor Manufacturing Co. across various projects in the country. The investment in Samsung is seen as a significant step towards strengthening America’s semiconductor industry and reducing reliance on overseas manufacturing.
