(MENAFN) In a move aimed at bolstering domestic semiconductor production, the Biden administration has unveiled a significant agreement to provide direct funding of up to USD6.4 billion to Samsung Electronics. This funding, announced by the Commerce Department, forms a crucial part of a broader investment in a computer chip manufacturing and research cluster in Texas, with the combined public-private investment expected to surpass USD40 billion.
The initiative stems from the CHIPS and Science Act, a legislative cornerstone signed into law by President Joe Biden in 2022, aiming to reinvigorate advanced computer chip manufacturing within the United States. Commerce Secretary Gina Raimondo emphasized the transformative potential of the proposed project during a call with reporters, heralding it as a catalyst for propelling Texas into a cutting-edge semiconductor ecosystem. Raimondo highlighted the administration's ambition to secure 20 percent of the global market share for leading-edge chips within the United States by the end of the decade.
The envisioned Samsung cluster in Taylor, Texas, is set to encompass two manufacturing facilities specializing in the production of four- and two-nanometer chips. Additionally, the cluster will feature a dedicated research and development facility, alongside a unit for chip component packaging. Raimondo projected substantial employment gains, with the project anticipated to generate upwards of 17,000 construction jobs and over 4,500 manufacturing positions, signaling a significant boost to both the local and national economies.
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