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Samsung to receive $6.6 billion CHIPS Act subsidy, industry sources claim
A few days ago, we reported that Samsung's investment in Taylor, Texas increased to around $44 billion. Thanks to an additional Reuters report, we now know that a large U.S. government subsidy also seems to be supporting that venture. In exchange for Samsung's more-than-doubling its U.S. investment to $44 million, the government will reward the company with a $6.6 billion subsidy. At least, according to Reuter's sources, who remain undisclosed.
When Reuters reached out to the Commerce Department and Samsung to confirm details of the story, both parties declined to comment. While this could mean the story is untrue, that seems unlikely considering the sheer scale of U.S. investment into Big Tech lately, especially when evaluating the budget behind the CHIPS Act.
In our previous reporting, details pointed to Samsung's Taylor, Texas operations as a focus for semiconductor production and HBM manufacturing. The Samsung campus in Taylor will play a crucial role in advancing the U.S.'s position in the semiconductor industry. While the details of the Taylor facility still seem to be true, Samsung may also be expanding elsewhere in Texas with the help of the subsidy they're receiving, according to the details of the Reuters report. The second location besides Taylor, Texas is currently unknown.
In any case, reports like these indicate that the Biden administration is taking the ongoing Chip War against China very seriously. With billions of dollars in agreements being thrown around seemingly every week, there's no doubt that the country is in the midst of a "fab renaissance."
This approach may be necessary in today's era of cutting-edge technology used globally for economic, military, and political operations. In any case, the likes of Samsung, TSMC, Intel, and SK hynix all have a lot to gain in the coming year as the CHIPS Act and related initiatives continue funneling investment into these companies.
The Biden administration is expected to officially announce its Samsung subsidy at some point next week.
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Christopher Harper has been a successful freelance tech writer specializing in PC hardware and gaming since 2015, and ghostwrote for various B2B clients in High School before that. Outside of work, Christopher is best known to friends and rivals as an active competitive player in various eSports (particularly fighting games and arena shooters) and a purveyor of music ranging from Jimi Hendrix to Killer Mike to the Sonic Adventure 2 soundtrack.
