2024-04-16 02:50:04
Samsung Electronics, which is building a semiconductor factory in Texas, will receive semiconductor subsidies worth $6.4 billion (approximately 8.9 trillion won) from the U.S. government under the Semiconductor Science Act (hereinafter referred to as the Semiconductor Act).
To this end, Samsung Electronics is currently investing $17 billion (approximately 23.5 trillion won) in Taylor, Texas to expand the size and investment target of the semiconductor factory under construction.
The U.S. Department of Commerce announced on the 15th (local time) that it would provide up to $6.4 billion in subsidies to support Samsung Electronics’ Taylor, Texas, factory.
This is a significant increase from the $2 billion to $3 billion originally expected, and is almost the same level as the subsidy ($6.6 billion) to be paid to TSMC, a Taiwanese semiconductor company.
Commerce Secretary Gina Lemondo said in a briefing the day before that the subsidies to Samsung Electronics will support two semiconductor production facilities, a research center, and a packaging facility. He also said the company would be able to expand its semiconductor factory in Austin, Texas.
Minister Lermondo said, “We are celebrating another historic investment in accordance with President Joe Biden’s ‘Invest in America’ agenda.” “We will once again lead the world in research and development,” he said.
U.S. government officials said this subsidy is part of funding under the Semiconductor Act passed in 2022 and will “promote semiconductor production in the aerospace, defense, and automotive industries and strengthen national security,” adding, “With this investment, at least 17,000 “Construction jobs will be created, and if we include the supply chain, tens of thousands of jobs will be created,” he said.
“The return of advanced chip manufacturing to the United States will be an important new chapter for the semiconductor industry,” explained White House National Economic Council Chairman Rayel Brainerd.
The subsidy received by Samsung Electronics is the third largest after American semiconductor company Intel (USD 8.5 billion, KRW 11.8 trillion) and Taiwanese semiconductor company TSMC (USD 6.6 billion, KRW 9.1 trillion).
Previously, on the 20th of last month, the U.S. government announced a support plan of $19.5 billion, including $8.5 billion in subsidies and $11 billion in loans, to Intel, and on the 8th, it announced a total support plan of $11.6 billion, including $6.6 billion in subsidies, to TSMC. .
In particular, TSMC announced that it would expand its investment in the United States from the original $25 billion to $65 billion in relation to U.S. subsidies and add a third factory in Arizona by 2030.
In line with the U.S. government’s subsidies, Samsung Electronics plans to invest a total of more than $40 billion (about 55.52 trillion won) by 2030.
Samsung Electronics is expected to build a new semiconductor factory in addition to the semiconductor production plant under construction in Taylor, Texas, starting in 2022, and to build a cutting-edge research and development (R&D) facility along with a packaging facility.
Samsung Electronics’ first plant in Taylor, Texas, is scheduled to produce 4-nanometer and 2-nanometer semiconductors starting in 2026, and its second plant is scheduled to mass-produce advanced semiconductors starting in 2027. The research and development fab is also scheduled to open in 2027.
The subsidy that Samsung Electronics will receive is somewhat smaller than that of TSMC, but the ratio of pure subsidies to investment amount is actually higher than that of TSMC.
Previously, foreign media outlets including Reuters reported that Samsung Electronics receives $6 billion to $7 billion (about 8.13 trillion to 9.5 trillion won) in semiconductor subsidies from the U.S. government.
Support for Samsung Electronics is in accordance with the Semiconductor Act enacted by the Biden administration in 2022. The Semiconductor Act provides for a total of $52.7 billion in support to companies, including subsidies and R&D expenses in the semiconductor field.
The U.S. government boldly supports investment in cutting-edge semiconductors, setting a goal of producing 20% of the world’s cutting-edge semiconductors domestically by 2030.
Another official said, “The investment in Samsung Electronics is the third investment and the final completion of the triangular axis to return cutting-edge semiconductor technology to the United States.” He added, “Paired with Samsung Electronics’ $40 billion investment, this investment is the largest investment in U.S. history.” “It will be recorded as one of the foreign investments,” he pointed out.
“Samsung’s decision to bring a state-of-the-art R&D facility to the United States means that the United States will benefit from cutting-edge technology,” the official said. “With this investment, the Biden administration will support the innovation community from Arizona to Texas.” He said.
(Washington·Seoul=News1)
2024-04-16 02:50:04