 |
Samsung Electronics' foundry facility in Texas (Samsung Electronics) |
The US Department of Commerce is poised to grant Samsung Electronics subsidies exceeding $6 billion, according to a news report Friday.
“The US plans to award more than $6 billion to Samsung Electronics, helping the chipmaker expand beyond a project in Texas it has already announced,” Bloomberg reported, citing multiple unnamed sources.
The federal funding for Samsung, South Korea’s leading chipmaker, comes alongside significant additional US investments being made by the firm, the report noted. In 2021, the company announced a $17 billion project in Taylor, Texas, near an existing Samsung plant in Austin. It is not yet clear where the additional investment would be located.
Market insiders here said the move is seen as a push to bolster Samsung Electronics' business expansion in the US, extending beyond its current construction efforts at the Texas foundry facility.
Bloomberg also reported that Taiwan Semiconductor Manufacturing Co. is expected to secure over $5 billion in subsidies under the US semiconductor law.
The US ratified semiconductor legislation in 2022 with the primary goal of fostering the domestic semiconductor industry. Under the legislation, companies that establish semiconductor factories in the US can qualify to receive up to 15 percent of their project expenses, capped at $3 billion per factory. The overall support allocation amounts to $39 billion, including provisions for research and development initiatives.
Further details are emerging regarding the support for other companies apart from Samsung Electronics. Intel, a key American competitor to Samsung and TSMC, is anticipated to benefit to the tune of over $10 billion in combined subsidies and loans.
Regarding these developments, Bloomberg has indicated that the announcement represents a preliminary agreement subject to potential revisions, emphasizing that the final decision has yet to be determined.
