Samsung and TI receive billions in funding for new chip factories in the US
Following extensive talks, two more firms besides Intel and TSMC will get tax funds for new US chip factories. They are already under construction.
Samsung's chip factory in Austin, Texas, will soon be getting an extension.
(Image: Samsung Foundry)
In the final stages of the Biden administration, some of the pledges from the CHIPS Act passed in 2022 to promote semiconductor factories in the USA will be turned into binding agreements after all. Samsung will receive USD 4.75 billion for its chip factory already under construction in Texas, and Texas Instruments (TI) will receive USD 1.6 billion for plants in Texas and Utah.
The funding agreements were announced on Friday, Bloomberg reports. A Samsung spokesperson also told the news agency why the funding amount was lower than previously reported: the company is currently restructuring all of its investments. In April 2024, 6.4 billion in funding was still on the table. However, it is not clear from previous reports whether, in addition to the start-up funding, tax relief is also planned for later when the factories have started series production. In the case of the Samsung factory in Texas, this is expected to happen in 2025.
Start-up funding and tax relief
Following the chip crisis during the coronavirus pandemic and the trade dispute with China, the US government passed the "CHIPS and Science Act" in mid-2022 to make the USA less dependent on international supply chains. The first acronym stands for "Creating Helpful Incentives to Produce Semiconductors". The law provides for subsidies for the construction or expansion of chip factories, as well as subsequent tax breaks of up to 25 percent.
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Before Samsung and TI, Intel, Micron and TSMC, among others, have been promised billions from the CHIPS Act in recent months; all of these companies want to expand their capacities in the USA.
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