(MENAFN- AzerNews)
The U.S. Commerce Department said Friday that it awarded Samsung
Electronics Co. up to US$4.745 billion in direct funding to support
the South Korean tech giant's chipmaking investment in central
Texas, as it strives to strengthen domestic semiconductor
production, Azernews reports, citing Yonhap
News.
The announcement came after the department announced a
preliminary deal with Samsung in April to provide up to $6.4
billion in grants under the CHIPS and Science Act. On Thursday, it
announced a final decision to give up to $458 million in direct
funding and up to $500 million in loans to another Korean firm, SK
hynix, for its investment in Indiana.
The funding will support Samsung's investment of over $37
billion in the coming years to turn its existing presence in
central Texas into a comprehensive ecosystem for the development
and production of leading-edge chips in the United States, the
department said.
Samsung's investment program includes two new leading-edge logic
fabs and an R&D fab in Taylor, as well as an expansion to their
existing facility in Austin.
"With this investment in Samsung, the U.S. is now officially the
only country on the planet that is home to all five leading-edge
semiconductor manufacturers," Secretary of Commerce Gina Raimondo
was quoted as saying in a press release.
"This is an extraordinary achievement, which will ensure we have
a steady, domestic supply of the most advanced semiconductors that
are essential to AI and national security, while also creating tens
of thousands of good-paying jobs and transforming communities
across the country," she added.
Jun Young-hyun, vice chairman and CEO of Device Solutions
Division at Samsung Electronics, expressed hope for further
collaboration with U.S. partners to meet the "evolving needs of the
upcoming AI-driven era."
"With nearly 30 years of semiconductor manufacturing experience
in the United States, we are proud and grateful for the
long-standing relationships we have established with our American
partners and customers, as well as communities across Texas," Jun
said.
"Our agreement with the U.S. Government today under the CHIPS
and Science Act represents another milestone as we continue to
invest and build a state-of-the-art semiconductor ecosystem in the
U.S."
The department said that Samsung's CHIPS investment would
support the creation of approximately 12,000 construction jobs and
more than 3,500 manufacturing jobs within the next five years,
while stimulating regional commercial growth.
MENAFN22122024000195011045ID1109020467
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.