TECHNOLOGY

U.S. awards Samsung $6.4 billion to build a new fab in Texas that will produce 2nm chips

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U.S. awards Samsung $6.4 billion to build a new fab in Texas that will produce 2nm chips

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U.S. awards Samsung .4 billion to build a new fab in Texas that will produce 2nm chips


The U.S. has been looking to build up its domestic semiconductor business and this week it awarded Samsung $6.4 billion under the CHIPS and Science Act to build a new fab in Taylor, Texas. Reportedly, this facility will be turning out cutting-edge 2nm chips starting in 2026. The announcement of Samsung’s funding came during an event attended by U.S. Secretary of Commerce Gina Raimondo and Samsung Semiconductor chief executive Kye Hyun Kyung. Samsung published a blog post about the announcement.

Kyung said that the funding by the U.S. government will increase production capacity while improving the local semiconductor ecosystem in Texas. In a statement, U.S. President Joe Biden said, “I am pleased to announce a preliminary agreement between Samsung and the Department of Commerce to bring Samsung’s advanced semiconductor manufacturing and research and development to Texas. This announcement will unleash over $40 billion in investment from Samsung, and cement central Texas’s role as a state-of-the-art semiconductor ecosystem, creating at least 21,500 jobs and leveraging up to $40 million in CHIPS funding to train and develop the local workforce.”

Biden added, “These facilities will support the production of some of the most powerful chips in the world, which are essential to advanced technologies like artificial intelligence and will bolster U.S. national security.” Samsung’s new Texas foundry is expected to cost $40 billion by the time the project is completed later this decade.

The U.S. has made three awards under the CHIPS and Science Act including the most recent one to Samsung. The other two awards went to TSMC, the world’s largest contract foundry, and Intel.

Samsung’s Kyung explained how the new facility will benefit the U.S. “We are not just expanding production facilities; we’re strengthening the local semiconductor ecosystem and positioning the U.S. as a global semiconductor manufacturing destination. To meet the expected surge in demand from U.S. customers, for future products like AI chips, our fabs will be equipped for cutting-edge process technologies and help bring security to the U.S. semiconductor supply chain.”

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The Semiconductor Industry Associate said, “Today’s announcement will help Samsung bring more semiconductor production, innovation, and jobs to U.S. shores, reinforcing America’s economy, competitiveness, and critical chip supply chains. We applaud Samsung for investing boldly in U.S.-based manufacturing and salute the U.S. Commerce Department for making significant headway in implementing the CHIPS Act’s manufacturing incentives and R&D programs. We look forward to continuing to work with leaders in government and industry to ensure the CHIPS Act remains on track to help reinvigorate U.S. chip manufacturing and research for many years to come.”



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