The U.S. Department of Commerce allocates more than $6.7 billion to support domestic semiconductor manufacturing and strengthen the technological supply chain.
Samsung Electronics, Texas Instruments, and Amkor have finalized their funding agreements under the CHIPS Act and Science, a program designed to boost advanced semiconductor production in the United States. These allocations, announced in December 2024, are part of a broader effort to ensure technological independence, protect national security, and promote economic competitiveness.
Funding Details
- Samsung Electronics: Will receive $4.745 billion, one of the largest individual allocations of the program. The funds will be directed to a $37 billion project that includes the construction of two advanced chip factories and a research and development center in Taylor, Texas. While Samsung was initially slated to receive $6.4 billion, delays in starting mass production, now scheduled for 2026, reduced the final amount. Funds will be disbursed based on meeting specific project milestones.
- Texas Instruments: Will obtain $1.610 billion to support an $18 billion investment plan for two factories in Sherman, Texas, and one in Lehi, Utah. These facilities will produce essential chips ranging from 65nm to 130nm in Sherman and from 28nm to 65nm in Lehi.
- Amkor: Will receive $407 million to support the construction of a semiconductor assembly and test plant in Peoria, Arizona, with a total estimated investment of $2 billion. This project includes an agreement with TSMC to provide advanced packaging services.
Impact of the CHIPS Act
The CHIPS Act incentive program has already awarded over $32 billion in funding to companies like Samsung, SK Hynix, Intel, and GlobalFoundries. These investments are designed to strengthen the U.S. position as a global leader in semiconductor manufacturing, a critical industry for emerging technologies such as artificial intelligence and defense systems.
Gina Raimondo, U.S. Secretary of Commerce, emphasized:
“With this investment in Samsung, the U.S. becomes the only country to host all five major advanced semiconductor manufacturers. This will ensure a steady supply of essential chips while creating thousands of well-paying jobs and transforming communities across the country.”
A Promising Future for Semiconductors in the U.S.
The funding aims not only to catalyze private investments but also to create a robust technological ecosystem. Samsung, for instance, plans to generate 12,000 construction jobs and 3,500 manufacturing jobs with its project in Texas. Additionally, the company will leverage its nearly three decades of semiconductor manufacturing experience in the United States.
Young Hyun Jun, Vice President and CEO of Samsung’s Device Solutions Division, stated:
“We are proud of our long-standing relationships with U.S. partners and communities. This agreement under the CHIPS Act represents another milestone in our mission to build a next-generation semiconductor ecosystem in the United States.”
Challenges and Prospects
While the CHIPS Act has spurred a total investment of $450 billion in the sector since the beginning of the Biden-Harris administration, it faces an uncertain future under the presidency of Donald Trump, who has criticized the program’s approach. Trump has argued that semiconductor companies should be taxed rather than provided grants.
Nonetheless, the program continues to attract leading companies and lay the groundwork for a more resilient national semiconductor industry. With growing global competition in advanced technology, these projects represent a crucial step for the U.S. to maintain its leadership in the high-tech sector.
via: DCD and commerce.gov