Samsung could unveil its $44 billion chip plant investment soon

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In addition to restricting China’s access to chip manufacturing equipment, the US is also making efforts to relocate chip manufacturing back to the US. Over the past few decades, chip manufacturing has largely shifted to Asia. To make it happen, the Biden administration is subsidizing chip manufacturing giants such as Intel, TSMC, and Samsung to build plants within the US.

Samsung has secured more than $6 billion of US government grants for the Texas chip manufacturing facility

Speaking of Samsung, the company already has a chip manufacturing facility in Austin, Texas. Alongside this, the giant is also working on another plant in Taylor, Texas. As initially reported by Bloomberg, the company has secured more than $6 billion of US government grants for this development as part of the CHIPS ACT.

It’s important to mention that Samsung has been working on the Texas chip manufacturing facility for quite a while now. As noted by Sammobile, they announced a $17 billion investment in the plant in Taylor back in 2021. Now the figure has reached a total of $44 billion, as revealed by people familiar with the development. Samsung is now reportedly preparing to reveal this $44 billion investment for the new chip manufacturing facility in Taylor.

TSMC and Intel are also focusing on manufacturing chips in the US

The CHIPS ACT allocates $39 billion in grants plus $75 billion in loans and guarantees. It has spurred well north of $200 billion in semiconductor investments. Not to mention, companies like TSMC and Intel have also opted for grants from the Biden administration to build their cutting-edge chip manufacturing facilities in the US. The report notes that the two companies have secured $20 billion and $11.6 billion in grants respectively.

It is unclear when Samsung’s new manufacturing facility in Taylor will begin mass production. It was reportedly delayed to 2025 in December last year. A report from Businesskorea notes that the mass production was initially expected to begin in 2024. The report also speculates that the delay could be due to various issues related to the US government subsidies and permissions or licenses.

TSMC’s production in Arizona is also postponed due to the same reason. A more recent report indicates that it has scheduled three of its chip manufacturing plants to start mass production in 2025, with the fourth one scheduled for 2028.