US confirms $6.4 billion chip subsidy for Samsung

The US government announced Monday that it will award up to $6.4 billion to Samsung Electronics for its chip fabrication facilities in Taylor, Texas.

"The return of leading-edge chip manufacturing to America is a major new chapter in our semiconductor industry," said White House National Economic Adviser Lael Brainard in a press briefing.

US Secretary of Commerce Gina Raimondo also revealed that the subsidy plan, coming under the US Chips Act, will support Samsung's two chip production facilities, a research center and a packaging facility.

"(These investments) will allow the US to once again lead the world, not just in semiconductor design, which is where we do now lead, but also in manufacturing, advanced packaging, and research and development," Raimondo said.

Samsung first announced to spend $17 billion to build the chipmaking plant in Taylor, Texas in 2021, and then is expected to expand the amount to roughly $45 billion for the Texas facilities by the end of the decade, according to the US officials.

Under the Chips Act, aimed at boosting the domestic chip industry, the US Commerce Department previously announced a plan to award $6.6 billion to Taiwan Semiconductor Manufacturing Company. In turn, TSMC agreed to increase its US investment by $25 billion to reach $65 billion in total and build a third Arizona factory by 2030.

The Biden administration last month pledged $8.5 billion in subsidies and $11 billion in loans to US chipmaker Intel, giving a boost to the homegrown semiconductor company.