Samsung Secures $4.7B CHIPS Act Grant for Texas Semiconductor Hub

The U.S. Department of Commerce awarded Samsung Electronics up to $4.745 billion in direct funding under the CHIPS Incentives Program for commercial fabrication facilities. 

The award follows a preliminary memorandum of terms announced on April 15, 2024.

Samsung will invest over $37 billion to expand its semiconductor operations in Central Texas. 

This includes two new cutting-edge logic fabs, an R&D fab in Taylor, and an expansion of its existing Austin facility.

The Commerce Department will distribute funds based on Samsung's completion of project milestones. 

The investment is expected to create approximately 12,000 construction jobs and over 3,500 manufacturing jobs within five years.

Samsung, which has manufactured chips in the United States since 1996, is the only semiconductor company leading in advanced memory and logic chip production.

The funding is part of the broader CHIPS for America initiative, which has awarded over $32 billion of more than $36 billion in proposed incentives funding allocated to date. 

The program requires recipients to meet specific construction, production, and commercial milestones to receive funding disbursements.