The US wants to expand chip production on its territory

The United States may provide Samsung with a $6.6 billion subsidy for chip production to expand its own capacity.

Here's What We Know

According to two people familiar with the matter, the Biden administration is about to announce a subsidy of up to $6.6 billion to Samsung to expand its chip manufacturing facility in Taylor, Texas. In general, the US has been more active in developing domestic chip production in recent years.

The subsidy is likely to be used to build four facilities in Taylor, including a $17 billion chip fab, which Samsung announced in 2021. There are also plans to build another plant, an advanced packaging facility and a research and development centre.

Such initiatives under the CHIP Act aim to increase domestic capacity in the US, as it has fallen from 37% to 12% over the past thirty years. The law, which Congress approved in 2022, outlines support for semiconductor manufacturing in the country through research and development subsidies as well as government loans.

Source: Reuters