A 2022 push by President Joe Biden’s administration to boost microchip manufacturing in America took another step forward Monday as a massive subsidy was announced as earmarked for Samsung Electronics.
Samsung will receive $6.4 billion in subsidies, according to the Department of Commerce, as part of the 2022 Chips and Science Act, and that money will help foot the bill for a pair of chip production facilities in Taylor, Tex.
The money will also go towards expanding Samsung’s semiconductor facility in Austin, increasing ship output for aerospace, defense, and auto industries and bolstering national security, Commerce Secretary Gina Raimondo told reporters.
“(These investments) will allow the U.S. to once again lead the world, not just in semiconductor design, which is where we do now lead, but also in manufacturing, advanced packaging, and research and development,” Raimondo said.
The goal of boosting chip production in America is lessening the nation’s dependence on China and Taiwan.
“By investing in leading-edge semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans,” Sen. John Cornyn, a Texas Republican, said according to Reuters.
Samsung now ranks third among companies in terms of subsidy benefits awarded from the Chips and Science Act. Intel has received $8.5 billion and Taiwanese company TSMC, the world’s top chip manufacturer, has gotten $6.6 billion to expand their American production.