Samsung is set to receive $6.6 billion in US subsidies through the CHIPS Act to build out its semiconductor fabrication plants in
“People familiar with the matter” told Bloomberg that South Korea’s largest company will announce the plans to bolster US-based semiconductor production in Taylor, Texas, alongside Commerce Secretary Gina Raimondo.
The CHIPS Act, (short for the ‘Creating Helpful Incentives to Produce Semiconductors for America Act) is a legislative initiative aimed at revitalising and strengthening the semiconductor industry in the US. The act is a response to the growing strategic importance of semiconductors in everything from consumer electronics to advanced military systems.
The total investment under the CHIPS Act is substantial, amounting to roughly $52 billion.
Alongside making smartphones and consumer electronics, Samsung is one of the largest manufacturers of semiconductors in the world, second only to Taiwan Semiconductor Manufacturing Company.
Intel, a relatively small player in the industry, is also strengthening its chip-production capabilities via CHIP Act subsidies.
Samsung will be eyeing up orders from the likes of Nvidia Corporation, AMD, Apple and Microsoft, who currently send their designs over to Taiwan to be manufactured.
As a more sophisticated chipmaker than Intel, Samsung is in a better place to capture the attention of these blue-chip clients, but success relies on matching the technological capabilities of TSMC.
TSMC was the first to achieve mass production of the advanced 5nm (nanometre) and 3nm technology nodes, which represent the cutting-edge of semiconductor tech.
TSMC is tipped to start production of 2nm chips in 2025. Though Samsung has reportedly secured a 2nm chip order from a Japan-based startup, it is unclear how close the group is to entering production mode.