Samsung Electronics Secures $ 4,745 Billion U.S.Subsidy chip
On December 20 (local time), the U.S. Department of Commerce announced that it would provide Samsung Electronics with up to $4.745 billion (approximately 34.6 billion RMB) in direct funding subsidies under the CHIPS Incentive Program. The funding is intended to support Samsung's plans to invest over $37 billion (approximately 270 billion RMB) in the coming years to develop a comprehensive chip development and production ecosystem in central Texas. This includes building two new logic fabs, a research and development (R&D) fab, and expanding its existing facilities in Austin.
However, compared to the initial memorandum of understanding, the subsidy amount was reduced by $1.655 billion, a decrease of approximately 25.85%. Reports suggest that the reduction in funding is due to Samsung scaling back its investment plans.
According to due diligence, Samsung plans to invest $37 billion in its Taylor facility to establish two semiconductor foundries and an R&D fab, which are expected to begin operations in 2026. Previously, Samsung had announced plans to invest over $40 billion by 2030.