The U.S. government intends to provide $6.4 billion in funding through the CHIPS and Science Act to help establish a semiconductor ecosystem in central Texas in partnership with Samsung Electronics.
The Department of Commerce said Monday that under a non-binding preliminary memorandum of terms it had signed with Samsung, the electronics company would, in turn, invest more than $40 billion over several years.
The proposed investments would benefit several projects at two locations in Texas.
The city of Taylor would see the construction of two logic foundry fabs, a research and development fab and an advanced packaging facility. The city of Austin would see the expansion of existing facilities that would give them the ability to produce technologies critical to various U.S. industries.
Under the partnership, Samsung has also pledged to collaborate with the Department of Defense.
According to U.S. Secretary of Commerce Gina Raimondo, CHIPS and Science Act investments like the one with Samsung “will be a catalyst for continued private sector investments to help secure the long-term stability we need to put America at the beginning of our semiconductor supply chain and to safeguard a strong resilient ecosystem here at home.”
For his part, Kye Hyun Kyung, the device solutions division president and CEO at Samsung Electronics, said, “We’re not just expanding production facilities; we’re strengthening the local semiconductor ecosystem and positioning the U.S. as a global semiconductor manufacturing destination.”
