The US Commerce Department Awards Samsung and Texas Instruments Over $6 Billion in Funding

Samsung Receives $4.745 Billion for Chip Facilities Expansion

The US Commerce Department has awarded Samsung and Texas Instruments with a combined over $6 billion in “direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication,” according to a pair of announcements published on Friday.

Samsung will get the larger of the two awards at $4.745 billion. The Commerce Department says the company will use this as part of its planned $37 billion investment in Texas chip facilities that include two new “leading-edge logic fabs and an R&D fab” in Taylor, Texas, and the expansion of its plant in Austin.

The company was originally slated to receive $6.4 billion. In a statement reported by Bloomberg, the company said that its “mid-to-long-term investment plan has been partially revised to optimize overall investment efficiency,” which suggests the company has dialed back its plans, according to the outlet.

Texas Instruments Awarded $1.61 Billion for Wafer Fab Projects

Texas Instruments will receive $1.61 billion to bolster the $18 billion it plans to spend on projects like constructing two wafer fabs in Texas and a third in Utah. The Commerce Department announced smaller awards this week too, including $407 million in funding for Amkor Technology, a US-based company that tests and packages chips for companies like Apple.

Final Thoughts

All three awards were announced earlier this year, with Samsung first in April, and they join other CHIPS Act funding grants given to companies like Micron, Intel, and TSMC. And their finalizations come with just under a month to go before Donald Trump, who has criticized the CHIPS Act, assumes the US Presidency on January 20th.

FAQs

Q: What is the CHIPS Incentives Program?

A: The CHIPS Incentives Program is a funding opportunity for commercial fabrication in the semiconductor industry.

Q: How much funding did Samsung and Texas Instruments receive?

A: Samsung received $4.745 billion, while Texas Instruments received $1.61 billion.

Q: What are Samsung’s plans for the funding?

A: Samsung plans to use the funding for its $37 billion investment in Texas chip facilities.

Q: Who else received funding from the Commerce Department?

A: Other companies like Micron, Intel, and TSMC also received funding grants under the CHIPS Act.

Q: When will Donald Trump assume the US Presidency?

A: Donald Trump is set to assume the US Presidency on January 20th.

Credit: www.theverge.com