The U.S. Commerce Department said on Friday it had awarded up to $4.745 billion to South Korea’s Samsung Electronics and up to $1,61 billion to Texas Instruments to expand chip manufacturing.
The Department of Defense stated that Samsung’s award was approximately $1.7 billion lower than the initial award announced by the Department in April which could have reached up to $6 billion. Its revised investment plans are the reason for this.
A spokesperson from Commerce stated that the department “changed the award to align it with market conditions and the scope of the investment made by the firm.” Samsung considers that this award represents a long-term commitment to Texas and the United States.
On April 30, officials announced that Samsung will spend approximately $45 billion in the next decade to complete their projects. Commerce said on Friday that Samsung plans to invest $37 billion.
Samsung Electronics’ Young Hyun Jun, a Samsung Electronics executive, did not comment immediately. In a statement issued by the Department of Commerce on Monday, the agreement was described as “another milestone in our efforts” to create and invest in an advanced semiconductor ecosystem in the U.S.
Texas Instruments has announced it will invest over $18 Billion in two new factories in Utah and Texas through 2029. Texas Instruments will invest more than $18 Billion in two new factories, one in Utah and another in Texas.
In August 2022, Congress approved a program for U.S. semiconductor manufacturing and related components of $39 billion. The government also has $75 billion in lending authority.
Commerce announced Intel’s award of $7.86 billion in the last month. The award is lower than the $8.5 billion announced in March after Intel’s California chips manufacturer won an additional $3 billion from the Pentagon.
Commerce has now finalized the largest awards it offered in previous years, including those made this week. Commerce finalized $458 million for SK Hynix Indiana. It has now finalized over $32 billion of the $36 Billion proposed in incentive funding.
According to Gina Raimondo’s Commerce Secretary, the U.S. has five of the top semiconductor manufacturers in the world.
