The Biden administration just As part of the CHIPS Act funding, it will provide up to $6.4 billion in grants to Samsung. This money will complete it said the company has pledged to spend in the state to build a “semiconductor ecosystem.”
This money will be spent Based in Taylor, Texas, it will focus on research and development of advanced logic technologies, manufacturing and, perhaps most importantly, packaging. When it comes to chips, packaging is about providing power, inputs, and outputs. It’s a highly specialized process that’s usually done overseas, meaning chips built on U.S. soil must also be shipped to another country and then shipped back. Samsung’s custom packaging facility should eliminate some of these headaches and strengthen the overall supply chain.
The money will also be used to expand Samsung’s existing facility in Austin. Taylor and Austin are only 40 minutes from each other, which the Biden administration said the combination of both facilities “suggests will transform Samsung’s existing presence in Texas into a comprehensive ecosystem for the development and manufacturing of advanced chips in the United States.” The president also says it will create 21,500 jobs for Texans and provide $40 million in training.
The CHIPS and Science Act empowered the federal government to provide funding and offer loans to technology companies to encourage domestic spending. GlobalFoundries In addition to taking on $1.6 billion in loans, to facilitate a major expansion. The company plans to use the money to build a new manufacturing facility in Malta, New York, to produce chips for the automotive, aerospace, defense and artificial intelligence industries.
Recently Intel , raised up to $8.5 billion to continue various ventures operating in the United States. Intel plans to use the money to build some new factories that produce semiconductor chips for the artificial intelligence industry. It is building two new manufacturing facilities in Arizona and two more in Ohio. Intel will also use the proceeds to modernize a pair of existing plants in New Mexico and Oregon. The company said it would invest $100 billion in chip manufacturing in the U.S., which would lead to an influx of about 30,000 jobs.
President Biden signed the CHIPS and Science Act of 2022 to encourage domestic semiconductor research and manufacturing to reduce America’s dependence on Chinese suppliers. For all that, he’s providing $52 billion in tax credits and funding for companies to expand state manufacturing.
