Chips
The new venture is expected to produce more than 21,000 new jobs.
Photo of Secretary of Commerce Gina Raimondo announcing a major grant at the Samsung semiconductor plant in Taylor, Texas, on Monday by Jay Janner of the Austin American-Statesman
WASHINGTON, April 15, 2024 – The Department of Commerce said Monday it will spend up to $6.4 billion in direct aid to Samsung Electronics to create a new semiconductor ecosystem in central Texas, according to the White House.
The non-binding preliminary memorandum of terms announced by the company and the Biden Administration is part of the implementation of the CHIPS and Science Act, an effort to spur a renaissance in American semiconductor manufacturing. The legislation attempts to insulate America’s supply-chains from potential vulnerabilities.
Reflecting on President Biden’s 2022 trek to South Korea’s Samsung campus, the Biden administration touted the new partnership with the telecommunications giant.
“Now, nearly two years later, I’m pleased to announce a preliminary agreement between Samsung and the Department of Commerce to bring Samsung’s advanced semiconductor manufacturing and research and development to Texas,” Biden state in the administration statement.
Impacts of the CHIPS and Science Act of 2022
When President Biden talks about his economic program, the CHIPS Act is the star of the show.
Samsung will invest roughly $40 billion into the new semiconductor venture in Texas, the statement claims. The new semiconductor manufacturing facility is expected to create at least 21,500 jobs.
Additionally, the telecommunications equipment manufacturer will utilize up to $40 million in CHIPS funding to train and develop a workforce around semiconductor manufacturing.
12 Days: Biden’s Signature CHIPS Act Spurs Investments and China Concerns
On the one year anniversary, the White House touted investment of one-hundred-and-66 billion dollars.
“These facilities will support the production of some of the most powerful chips in the world, which are essential to advanced technologies like artificial intelligence and will bolster U.S. national security,” the statement reads.
U.S. Secretary of Commerce Gina Raimondo praised the announcement and argued that the CHIPS Act incentivizes much-needed private sector investment into America’s semiconductor industry. These investments bolster American national security, Raimondo said.
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