The U.S. Department of Commerce has finalized substantial semiconductor awards aimed at boosting domestic chip production, with Samsung Electronics, Texas Instruments, and Amkor Technology receiving funding to expand their U.S. operations. These awards, totaling up to $6.75 billion, are part of a broader effort to strengthen the U.S. semiconductor manufacturing sector.
Samsung Electronics Awarded $4.75 Billion
South Korea’s Samsung Electronics will receive up to $4.75 billion to support its U.S. chip manufacturing expansion. However, this amount is notably smaller than the $6.4 billion preliminary award announced in April. According to the Commerce Department, the reduction reflects a revision in Samsung’s investment plans, with the company adjusting its commitment to align with current market conditions.
A spokesperson for Samsung explained that the company has “partially revised its mid-to-long-term investment plan to optimize overall investment efficiency,” but did not provide further details on the revised agreement. Samsung had initially outlined a $45 billion investment plan to build two semiconductor production facilities, a research center, and a packaging plant by 2030. The latest plan now involves an investment of $37 billion, with projects expected to be completed by the decade’s end.
Texas Instruments Secures $1.61 Billion
Texas Instruments (TI) is set to receive $1.61 billion to expand its U.S. production capabilities. TI will invest more than $18 billion through 2029 to build two new factories in Texas and another in Utah, generating approximately 2,000 manufacturing jobs. The company’s Texas operations will receive $900 million, while its Arizona-based semiconductor packaging facility, operated by Amkor Technology, will be awarded $700 million. This expansion is a significant step toward reinforcing the semiconductor supply chain in the United States.
Amkor Technology’s $407 Million for Arizona Facility
Amkor Technology has been awarded $407 million to help fund its planned $2 billion advanced semiconductor packaging facility in Arizona. Once fully operational, this facility will become the largest of its kind in the U.S. Amkor’s new plant will focus on packaging and testing millions of chips used in applications like autonomous vehicles, 5G/6G networks, and data centers. Apple, one of Amkor’s major customers, will utilize chips produced at this facility, with production sourced from the nearby TSMC (Taiwan Semiconductor Manufacturing Company) site.
Amkor CEO Giel Rutten emphasized the importance of the Arizona plant, stating, “This facility will serve as a critical cornerstone in establishing a robust semiconductor manufacturing supply chain within the United States.”
Federal Incentives and Growing Semiconductor Industry
The U.S. government’s push to increase domestic semiconductor production comes as part of a broader effort to secure the nation’s supply chain and reduce dependency on foreign manufacturers. In August 2022, Congress passed a $39 billion subsidy program for U.S. semiconductor manufacturing, with an additional $75 billion in government lending authority.
In addition to the $6.75 billion finalized for Samsung, Texas Instruments, and Amkor, the Department of Commerce also awarded up to $7.86 billion to Intel for expanding its manufacturing operations. Last month, Intel received a revised award of $7.86 billion, slightly reduced from the original $8.5 billion after Intel won a separate $3 billion award from the U.S. Department of Defense.
To date, the Department of Commerce has finalized over $33 billion in funding commitments as part of its semiconductor support program, with the majority of the proposed $36 billion in incentives now secured. Secretary Gina Raimondo highlighted the significance of this investment, stating, “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.”
Additional Resources:
- Samsung’s Semiconductor Manufacturing in the U.S.
- Texas Instruments Expansion Plans
- Amkor Technology’s Advanced Packaging Facility
- Commerce Department’s Semiconductor Incentive Program
These strategic investments aim to bolster U.S. semiconductor production, ensuring the country remains competitive in the global tech industry.
