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The Biden administration just announced a preliminary agreement to award Samsung up to $6.4 billion in grants as part of CHIPS Act funding. This money will complement the $44 billion in private investment that the company has promised to spend in the state to build a "semiconductor ecosystem."
This money will be spent to finish a "leading-edge" campus in Taylor, Texas that will focus on research and development of advanced logic technologies, manufacturing and, perhaps most importantly, packaging. When it comes to chips, packaging refers to providing power, inputs and outputs. It's a highly specialized process that's typically done overseas, which means that even chips built on US soil have to get shipped to another country and then mailed back. Samsung's dedicated packaging facility should eliminate some of these headaches and strengthen the overall supply chain.
The money will also go toward an expansion of Samsung's pre-existing facility in Austin. Taylor and Austin are only 40 minutes away from one another, leading the Biden administration to suggest that the combination of both facilities will turn "Samsung's existing presence in Texas into a comprehensive ecosystem for the development and production o
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The federal grants will support Samsung's new chip manufacturing hub in Taylor, Texas, along with the expansion of an existing site in Austin.
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