U.S. Commerce Department Awards Billions to Samsung and Texas Instruments

By David Shepardson

The U.S. Commerce Department announced on Friday it is finalizing an award of up to $4.745 billion to Samsung Electronics and $1.61 billion to Texas Instruments for expanding chip production.

Details of the Awards

• The Samsung award is approximately $1.7 billion less than the preliminary award of $6.4 billion announced in April, reflecting the company's smaller investment plans.
• A spokesperson from Commerce stated that the award was adjusted to align with market conditions and Samsung's revised scope of investment.

Samsung is planning to invest approximately $37 billion, down from an earlier estimated $45 billion, to establish two chip production facilities, a research center, and a packaging facility by 2030. Samsung Electronics executive Young Hyun Jun commented that the agreement marks a significant milestone in building a state-of-the-art semiconductor ecosystem in the U.S.

Texas Instruments has also committed over $18 billion through 2029 for new factories in Texas and Utah, aiming to create 2,000 manufacturing jobs. The company will receive $900 million for its Texas operations and $700 million elsewhere.

In August 2022, Congress approved a $39 billion subsidy for U.S. semiconductor manufacturing. Last month, Commerce finalized up to $7.86 billion for Intel, revising down from $8.5 billion. With this, Commerce has finalized over $32 billion of the $36 billion in proposed incentives.

Commerce Secretary Gina Raimondo emphasized that with the investment in Samsung, the U.S. is now home to all five leading-edge semiconductor manufacturers worldwide.