Samsung Electronics will receive $6.4 billion in CHIPS and Science Act funding, the Commerce Department announced Monday.
The chipmaker will use the funds to help build two logic fabrication plants, a research and development fab and an advanced packaging fab in Taylor, Texas. It will also expand its existing Austin, Texas, plant, bringing the company's total regional investment to over $40 billion.
The projects are expected to create at least 21,500 jobs, including 17,000 construction jobs and 4,500 manufacturing positions, according to the department. Samsung will also leverage $40 million in CHIPS funding on workforce development initiatives.
"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," President Joe Biden said in a statement Monday.
Samsung, which has been manufacturing semiconductors in Texas since 1996, produces both advanced memory and advanced logic technologies. The highly coveted chips power everything from smartphones to high performance computing and military AI solutions.
The South Korea-based company broke ground on its Taylor project in 2022 with an investment of $17 billion. It plans to start production this year, according to its website.
The logic foundry fabs will produce 4nm and 2nm process technologies, while the R&D facility will focus on technology generations ahead of nodes currently in production. The packaging plant will manufacture 3D high bandwidth memory and 2.5D packaging, key for AI applications.
Samsung's funds are part of a wider rollout in CHIPS money to leading semiconductor makers across the country. The Biden administration has doled out roughly $23 billion total in funds to power its promised renaissance in domestic semiconductor manufacturing.
Most recently, the Commerce Department awarded Taiwan Semiconductor Manufacturing Co. $6.6 billion in CHIPS funding to aid its plans to turn Phoenix into a chip manufacturing hub.
