Yahoo Finance US grants Samsung $6.4B for Texas chipmaking facilities
The Biden administration is awarding Samsung (005930.KS) up to $6.4 billion to build and upgrade its chipmaking facilities in central Texas. The grant was awarded as part of the CHIPS and Science Act, which aims to boost chipmaking in the United States.
In the video above, Yahoo Finance's Seana Smith and Madison Mills discuss the announcement.
For more expert insight and the latest market action, click here to watch this full episode.
This post was written by Stephanie Mikulich.
Video transcript
SEANA SMITH: We want to get to another big story that we're watching, and that's the Biden administration making another move to bolster chip production here in the US. We know it certainly has been a priority for the administration. Well, now Samsung is going to receive up to $6.4 billion in US grants to build chip-making facilities in Texas. Now, more specifically, Samsung is expected to invest $40 billion itself in this project.
It's going to build new plants in Taylor, Texas, which is just northwest of Austin, Texas. It also is planning to expand the company's existing plant in Austin, and this will be for chips that are involved in many aspects of this new technology when it comes to AI, even when it comes to medical devices like pacemakers, so really critical here for future technological innovation and, again, just the latest move here from the Biden administration really doubling down and doing all it can to bring more chip manufacturing back here to the US.
MADISON MILLS: Well, and members of the Biden administration are already kind of hopping on that talking point this morning, though. In accuracy, they talk about Commerce Secretary Gina Raimondo on a call this morning saying that this does put the US on track to hit their goal of producing 20% of the world's leading chips in the US just by the end of the decade that's coming up here and saying also that this is going to be a boon to the local economy.
It's expected to create 17,000 construction jobs and more than 4,500 manufacturing jobs. So also, that was a reminder to me this isn't just about the US having the power when it comes to chips production, but also the economic power behind getting involved in this space.
SEANA SMITH: Yeah. Remember, earlier this year, the Biden administration announcing grants to TSMC for a large manufacturing project in Arizona, also recently announcing the deal with Intel, funding for Intel for plants in Arizona, Ohio, New Mexico, and Oregon.
