Samsung Electronics Co. is preparing to announce a $44 billion investment in U.S. chip manufacturing as early as next week, a landmark project in Washington’s broader effort to bring semiconductor manufacturing back to America.
The world’s largest memory chip maker plans to unveil the project in Taylor, Texas, with Commerce Secretary Gina Raimondo, according to people familiar with the matter. The company has received more than $6 billion in U.S. government grants for investment spending, which has grown significantly to $44 billion over the years, sources said. The timing and details of the announcement could change before it is finalized, the people said, asking not to be identified discussing private matters.
The award is the latest in a flurry of multibillion-dollar handouts from the Biden administration, which is using the 2022 Chips and Science Act to try to revive American chip manufacturing after decades of shifting production to Asia. The broader agenda also aims to counter China’s technological rise as it builds its own semiconductor industry.
The CHIP Act, which provided $39 billion in grants plus $75 billion in loans and guarantees, spurred more than $200 billion in private investment in semiconductors. Intel almost fell into a trap 20 billion dollars in grants and loans. Taiwan Semiconductor Manufacturing Co. is the main chip manufacturer for Nvidia Corp. and Apple Inc. — received 11.6 billion dollars. It is unclear whether Samsung will receive loans on top of more than $6 billion in government grants.
Samsung’s project complements Texas’ robust semiconductor ecosystem, including tens of billions of dollars in additional investment from Texas Instruments Inc. in its home state and Samsung’s existing plant in Austin. It is unclear when mass production will begin at the Taylor plant, following a report detain last year. Company representatives declined to comment.
Next week’s announcement will kick off a month-long due diligence period during which Samsung and the Commerce Department will hammer out the final terms of their agreement. The money will then be paid as the project reaches key construction and production milestones, with the possibility of a refund if the firm fails to deliver on its promise.