U.S. finalizes $6.75 billion in chip funding for Samsung, Texas Instruments and Amkor
The U.S. Commerce Department announced on Friday the finalization of awards totaling up to $6.75 billion to boost semiconductor production. South Korea's Samsung Electronics will receive up to $4.745 billion, Texas Instruments will receive up to $1.61 billion, and Amkor Technology will receive up to $407 million.
These awards are part of the U.S. government's broader effort to strengthen its domestic chip manufacturing capabilities which saw the development of the CHIPs Act in 2022. Under the regulation, the government pledged up to $39 billion to help subsidize semiconductor manufacturing and related components.
The Samsung award is slightly smaller than the preliminary $6.4 billion announced in April. The Commerce Department explained that the adjustment reflects Samsung's revised investment plans and current market conditions.
Samsung confirmed a partial revision of its mid-to-long-term investment plan to "optimize overall investment efficiency" but did not disclose specific details of the agreement. While initially planning a $45 billion investment by 2030, Samsung now intends to invest $37 billion and complete its projects by the end of the decade, which includes two chip production facilities, a research center, and a packaging facility.
On its end, Texas Instruments has committed to investing over $18 billion through 2029 in new factories in Texas and Utah, creating an estimated 2,000 manufacturing jobs. The company will receive $900 million for its Texas operations and $700 million for its Utah operations.
Amkor Technology's $407 million award will support its planned $2 billion advanced semiconductor packaging facility in Arizona, poised to become the largest of its kind in the U.S. This facility will package and test millions of chips for various applications, including autonomous vehicles, 5G/6G technology, and data centers.
Apple has been confirmed as Amkor's first and largest customer, utilizing chips produced at a nearby TSMC facility. Amkor CEO Giel Rutten emphasized that the facility "will serve as a critical cornerstone in establishing a robust semiconductor manufacturing supply chain within the United States."
To date, the Commerce Department has finalized over $33 billion of the over $36 billion in proposed incentives funding. This includes up to $458 million for SK Hynix in Indiana early this week, and up to $7.86 billion for Intel last month. The amount was less than the initially announced $8.5 billion after Intel secured separate funding from the Pentagon.
"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," declared Commerce Secretary Gina Raimondo.
