The United States will provide up to $6.4 billion in subsidies to South Korean giant Samsung to produce cutting-edge electronic chips in Texas, the government announced Monday.
“The Ministry of Commerce and Samsung Electronics signed a preliminary memorandum of understanding granting up to $6.4 billion in direct financing”
of new factories, according to a ministry statement. Samsung should invest
“more than 40 billion dollars in the region in the coming years”
thus allowing the
“creation of more than 20,000 jobs”
, added the ministry.
Determined to reduce its dependence on these essential components in the race for new technologies, the United States is increasing initiatives of this type. The agreement concluded with Samsung will
“seal the central role of Texas”
in the semiconductor industry in the United States, welcomed American President Joe Biden in a press release.
“These facilities will support the production of some of the most powerful chips in the world, which are essential for technologies like artificial intelligence and will strengthen national security
,” the statement added.
Under the latest agreement, Samsung will also expand its existing facilities in Texas, the Commerce Department said. In addition to this expansion,
“we will strengthen the local semiconductor ecosystem”
in the United States, according to Kyung Kye-hyun, co-CEO of Samsung Electronics, quoted in the press release from the American ministry. Last Monday, Taiwanese semiconductor giant TSMC announced the construction of a third factory in Arizona (west), bringing its total investment to $65 billion.
This announcement was based on a preliminary agreement with the Ministry of Commerce, linked to a major technology investment law, the
“Chips and Science Act”
. Under the agreement, the company will receive up to $6.6 billion in direct financing and may benefit from an additional $5 billion in loans. The
“Chips and Science Act”
, which dates from the summer of 2022, provides $52.7 billion to revive semiconductor production in the United States, with the idea that public money serves as a springboard for private investments.