US Commerce Awards Over $6 Billion in CHIPS Act Funding to Samsung and Texas Instruments
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Samsung and Texas Instruments Receive Over $6 Billion in Funding Under CHIPS Act
The US Commerce Department has awarded Samsung and Texas Instruments with a combined total of over $6 billion in direct funding, according to recent announcements. This funding is part of the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication, aimed at boosting domestic semiconductor production in light of growing global demand.
Samsung's Investment Plan
Among the two, Samsung received the larger award of $4.745 billion. The company plans to incorporate this funding into its ambitious $37 billion investment aimed at expanding its chip fabrication facilities in Texas. This investment will include the construction of two new leading-edge logic fabs and a research and development fab in Taylor, Texas, alongside an expansion of the existing plant in Austin.
However, it’s noteworthy that Samsung initially anticipated receiving $6.4 billion. A statement from the company, reported by Bloomberg, indicated a revision of its "mid-to-long-term investment plan" to optimize overall efficiency, suggesting a potential scaling back of its initial plans.
Texas Instruments' Expansion Efforts
Texas Instruments secured funding amounting to $1.61 billion, which will complement the $18 billion earmarked for constructing two wafer fabs in Texas and a third in Utah. This funding aligns with the company's strategy to bolster the local semiconductor manufacturing ecosystem as demand surges.
Additional CHIPS Act Funding
In addition to the significant awards given to Samsung and Texas Instruments, the Commerce Department announced other smaller funding allocations this week. Notably, $407 million was awarded to Amkor Technology, a US firm known for testing and packaging chips for prominent clients, including Apple.
These funding announcements are part of a broader initiative under the CHIPS Act to support firms like Micron, Intel, and TSMC in attracting investment and ramping up semiconductor production in the United States.
Future Implications
As we approach the inauguration of Donald Trump, who has previously criticized the CHIPS Act, it remains to be seen how these developments will unfold and what impact they might have on the semiconductor industry moving forward.
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