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US confirms billions in chips funds to Samsung, Texas Instruments / Photo: © AFP/File
NYSE - LSE
US confirms billions in chips funds to Samsung, Texas Instruments
President Joe Biden's administration said Friday that it has cemented deals for billions in funding to South Korean semiconductor giant Samsung Electronics and Texas Instruments to boost their chipmaking facilities in the United States.
US officials have been working to solidify Biden's legacy to bolster domestic semiconductor manufacturing ahead of President-elect Donald Trump's White House return -- and these agreements are among the latest efforts to do so.
The United States has been trying to reduce its dependence on other countries for semiconductors, while also seeking to maintain its scientific and technological edge as competition with China intensifies.
Samsung's award of up to $4.7 billion in direct funding goes towards its effort to grow its Texas presence into a full-fledged operation for developing and producing leading-edge chips, said the US Commerce Department.
The funding will supplement the company's investment of more than $37 billion in the coming years, the department added.
Samsung's expansion will help "ensure we have a steady, domestic supply of the most advanced semiconductors that are essential to AI and national security, while also creating tens of thousands of good-paying jobs," Commerce Secretary Gina Raimondo said in a statement.
National Economic Advisor Lael Brainard added that Samsung is "the only semiconductor company that is a leader in both advanced memory and advanced logic chips."
In a separate notice, the Commerce Department said it also had finalized an award of up to $1.6 billion for Texas Instruments, supporting its efforts to build new facilities.
Raimondo noted that shortages of current-generation semiconductors were a problem during the supply chain disruptions sparked by the Covid-19 pandemic, adding that TI now plans to grow its US capacity in making these devices.
The Biden administration has unveiled billions in grants through the CHIPS and Science Act, a major law passed during the veteran Democrat's term aimed at strengthening the US semiconductor industry.
Officials have managed to get many deals across the finish line before Trump returns to the Oval Office, awarding the vast majority of more than $36 billion in proposed incentives that have been allocated.
The finalized deals mean funds can be disbursed as companies hit project milestones.
U. Schmidt--BTZ
