US grants Samsung up to US$6.4 billion in funding to produce advanced chips in Texas

The United States announced on Monday grants of up to US$6.4 billion to South Korean semiconductor giant Samsung Electronics to produce cutting-edge chips in Texas.

The award is the latest from the US government as it looks to cement its lead in the semiconductor industry – especially for chips needed for the development of artificial intelligence (AI) – both on national security grounds and also in the face of competition with China.

President Joe Biden’s administration has previously approved billions in grants to US titan Intel and Taiwan Semiconductor Manufacturing Co (TSMC), as the US tries to avoid the prospect of shortages of semiconductors.

“The US Department of Commerce and Samsung Electronics have signed a non-binding preliminary memorandum of terms to provide up to $6.4 billion in direct funding under the Chips and Science Act,” said a statement published by the Commerce Department.

Samsung, which is the world’s largest maker of memory chips and smartphones, “is expected to invest more than US$40 billion in the region in the coming years, and the proposed investment would support the creation of over 20,000 jobs”, the agency said.