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The US said the funding would help Samsung invest more than $40bn into multiple semiconductor projects in Texas.
Samsung is getting a potentially massive subsidy from the US Chips Act to boost the country’s semiconductor manufacturing capabilities.
The US White House and US Department of Commerce confirmed a non-binding agreement has been signed to give Samsung up to $6.4bn to “strengthen the resilience of the US semiconductor supply chain”.
The US funding is expected to help Samsung invest more than $40bn into semiconductor manufacturing, research and development in the US state of Texas, creating “at least” 21,500 jobs and growing the state’s production of chips.
“These facilities will support the production of some of the most powerful chips in the world, which are essential to advanced technologies like artificial intelligence and will bolster US national security,” US president Joe Biden said in a statement.
The proposed investment will support multiple projects at two locations in Central Texas. These projects include the creation of two “foundry fabs” and the expansion of an existing facility in Austin, Texas.
The US Department of Commerce said the investment is expected to create 17,000 construction jobs and more than 4,500 manufacturing jobs within the next five years, which suggests the new projects will be operational by 2029.
The initiative is part of a broader effort by the US to strengthen its domestic production of advanced semiconductors. Earlier this month, the US awarded TSMC billions of dollars in similar subsidies and loans to boost semiconductor production.
Last month, the US government said it would give Intel $8.5bn to help the chipmaker boost domestic production.
Meanwhile, the announcement marks another boost for Samsung, which is expected to have a reversal in fortunes when it comes to its global earnings. The company recently forecast that its profits in the first quarter this year will increase more than tenfold compared to the same period last year.
Samsung also regained its dominance in the global smartphone market, which appears to be entering a period of recovery based on a recent report.
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