News| Samsung Electronics gets $640 million U.S. government grant to accelerate semiconductor expansion

In the era of artificial intelligence, global semiconductor giant Samsung Electronics announced that it will receive up to $6.4 billion in subsidies from the U.S. government. The company plans to expand its investment to chip manufacturing facilities in Taylor and Austin, Texas, as well as other research and packaging facilities. This move aims to accelerate the expansion of the global semiconductor supply chain while meeting the surging demand for future products like AI chips.

According to a statement from the Biden administration, Samsung Electronics will receive this funding under the provisions of the 2022 CHIPS and Science Act, which aims to increase U.S. semiconductor production to 20% of the world's leading chip output by 2025.

The substantial funding will primarily support the expansion of Samsung's chip production facilities in Taylor and Austin, Texas, increasing the investment in existing plants from an original $17 billion to over $40 billion. Additionally, a new semiconductor manufacturing facility will be built outside the existing plant in Taylor, alongside advanced packaging and R&D facilities.

Kyung Kye-hyun, CEO and head of the semiconductor business at Samsung Electronics, stated, "We are not just expanding production facilities; more importantly, we are enhancing the local semiconductor ecosystem, positioning the United States as a global semiconductor manufacturing destination." He also emphasized that to meet the demands of American customers for future products, their fabs will be equipped with cutting-edge process technologies and will contribute to the security of the U.S. semiconductor supply chain.

Furthermore, in February this year, Samsung Electronics launched its 5th generation HBM chip with 12 layers of DRAM, boasting an industry-leading capacity of 36GB. This development will help meet the demand for high-performance AI chips and is expected to begin mass production in the first half of this year.

In addition to Samsung Electronics, another Korean competitor, SK Hynix, has joined the U.S. government's initiative to attract the semiconductor manufacturing supply chain to the United States. They announced an investment of $3.87 billion to establish advanced packaging manufacturing and R&D facilities in West Lafayette, Indiana.

Kim Yang-peng, a researcher at the Industrial Research Institute, noted, "The U.S. government's evaluation of Samsung Electronics' investment plan and corporate value appears more favorable compared to its competitors. These subsidies will help Samsung Electronics reduce the self-financing of overseas expansion, while strengthening its position in the global semiconductor supply chain through domestic production in the U.S."

Overall, Samsung Electronics' initiative will not only accelerate the development of the U.S. semiconductor industry but will also contribute to the stability and sustainable development of the global semiconductor supply chain.