The CHIPS and Science Act has led the U.S. government to provide $6.4 billion in funding for the establishment of a semiconductor ecosystem in central Texas, in collaboration with Samsung Electronics. A preliminary memorandum of terms was signed between the Department of Commerce and Samsung, outlining their commitment to invest over $40 billion over several years.
The partnership would involve various projects at two locations in Texas: the city of Taylor will have the construction of two logic foundry fabs, a research and development fab, and an advanced packaging facility. On the other hand, Austin will see the expansion of existing facilities to enable production of technologies crucial to several U.S. industries. Additionally, Samsung has pledged to work closely with the Department of Defense as part of this partnership.
Gina Raimondo, U.S Secretary of Commerce, believes that investments like this one under the CHIPS and Science Act will attract further private sector investments, ensuring long-term stability required to position America at the forefront of the semiconductor supply chain. Kye Hyun Kyung, president and CEO of Samsung Electronics’ device solutions division stated that their goal is not only to expand production facilities but also to strengthen local semiconductor ecosystem and establish U.S as a global semiconductor manufacturing hub.
