Samsung doubles its semiconductor investment in Texas to $44 billion

It looks like it’s starting to pay off.Samsung plans to double its investment in Texas . That would bring total investment in the state’s chip manufacturing industry to $44 billion, with Samsung already spending nearly $20 billion.

The ambitious expansion will reportedly take the form of a new wafer fabrication facility, packaging facility, and R&D space. It will all be located in or near Tyler, Texas, as that is. The current manufacturing center is not yet operational, but will begin building “critical logic wafers” later this year. For those with limited geographical access, Tyler is about a 40-minute drive from Austin.

If this happens, it would be a huge win for the Biden administration. After all, one of the main goals of the Chip Act is to attract global chip manufacturers to produce here in the United States. To that end, Washington sees Samsung as further incentive to keep operating well in the United States.

The CHIPS Act allows the federal government to provide funding and loans to many technology companies to encourage domestic spending. Back in February, multinational semiconductor company GlobalFoundries provided a $1.6 billion loan to help pay for a major expansion in the United States. The company plans to build a new manufacturing facility in Malta, New York, to manufacture chips for the automotive, aerospace, defense and artificial intelligence industries.

Recently, Intel raised $8.5 billion in funding to continue its various operations in the United States. Intel’s current plan is to use the funds to build factories to produce cutting-edge semiconductor chips for artificial intelligence and other advanced applications. The company is building two new manufacturing facilities in Arizona and Ohio. In addition, the company will use the funds to modernize two existing plants in New Mexico and expand a plant in Oregon. All told, Intel will invest $100 billion in U.S. chip manufacturing. Various projects are expected to create 20,000 construction and 10,000 manufacturing jobs.

The Biden administration signed the Chip and Science Act into law as early as 2022 to promote domestic semiconductor research and manufacturing and reduce U.S. dependence on Chinese suppliers. It sets aside $52 billion in tax credits and funding for companies to expand domestic production in the United States.

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