The administration of U.S. President Joe Biden has given $6.4 billion U.S. to Samsung Electronics to help fund the development of a microchip manufacturing plant in Texas.
The funding comes from the U.S. CHIPS and Science Act that aims to revive the domestic production of microchips and semiconductors.
The U.S. government has a goal to produce 20% of the world’s microchips by the end of the current decade.
The Samsung plant located in Taylor, Texas is expected to create 17,000 construction jobs and more than 4,500 manufacturing jobs once it opens in 2026.
Samsung plans to make four- and two-nanometer chips in Texas, and operate a factory dedicated to research and development (R&D), as well as a facility for the packaging that surrounds chip components.
In addition to the $6.4 billion U.S. in direct funding, Samsung said it also plans to claim an investment tax credit from the U.S. Treasury Department to help fund its Texas expansion.
In recent weeks, he U.S. government has announced funding for other chipmakers including Intel (INTC) and Taiwan Semiconductor Manufacturing Co. (TSM), each of which is also building microchip manufacturing plants in America.
South Korean-based Samsung’s stock trades in the local currency on the Korean stock exchange. Its share price has risen 26% in the last 12 months.
