The U.S. Commerce Department said Friday it was finalizing awards of up to $4.745 billion to South Korea’s Samsung Electronics and up to $1.61 billion to Texas Instruments to expand chip production.
The department also finalized an award of up to $407 million to support Amkor Technologies’ planned $2 billion advanced semiconductor packaging facility in Arizona, which will be the largest of its kind in the US.
The Samsung award is about $1.7 billion less than the initial award of $6.4 billion announced in April and reflects its revised small investment plan, the department said.
A Commerce spokesman said the department had “changed the award to align with market conditions and the range of investments the company is making.”
A Samsung spokesman said its “mid-to-long-term investment plan has been partially revised to optimize overall investment efficiency” but declined to disclose details of the deal with the Commerce Department.
In April, administration officials said Samsung plans to invest about $45 billion by 2030 to build two chip manufacturing facilities, a research center and a packaging facility. On Friday, Commerce said Samsung plans to invest $37 billion and complete projects. decade
Texas Instruments has pledged to invest more than $18 billion in two new factories in Texas and one in Utah by 2029, which is expected to create 2,000 manufacturing jobs. The company is receiving between $900 million and $700 million for its Texas operations.
Amkor’s Arizona plant, when fully operational, will package and test millions of chips for autonomous vehicles, 5G/6G and data centers. Apple will be its first and largest customer with chips produced at the nearby Taiwanese chipmaker TSMC facility.
Amkor CEO Giel Rutten said the facility “will serve as an important foundation in establishing a strong semiconductor manufacturing supply chain within the United States.”
In August 2022, Congress approved a $39 billion subsidy program in a $75 billion government loan authorization for U.S. semiconductor manufacturing and related components.
Last month, Commerce finalized the award for Intel to $7.86 billion, down from $8.5 billion announced in March after the California-based chips maker won a separate $3 billion award from the Pentagon.
Commerce has now finalized the largest awards it offered earlier this year, including this week, up to $458 million for SK Hynix in Indiana. In total, Commerce has finalized more than $33 billion of the $36 billion in proposed stimulus funding.
“With this investment in Samsung, the United States is now officially home to all five of the leading edge semiconductor manufacturers on the planet,” said Commerce Secretary Gina Raimondo.
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