Samsung Electronics, Amkor Technology and Texas Instruments have secured new funding to increase semiconductor production in the United States. The grants are part of the CHIPS Incentives Program’s funding opportunity for commercial fabrication facilities, the Department of Commerce said Dec. 20.
The companies previously signed non-binding preliminary memoranda of terms to secure the funding.
US Awards Funding to Samsung
According to the Commerce Department, Samsung, which was first to sign a preliminary memorandum of terms, will receive up to $4.74 billion in direct funding. The incentive supports Samsung’s pledge to invest over $37 billion in the coming years to create a comprehensive ecosystem that will include research and development facilities and logic fabricators.
Samsung will also expand its current semiconductor facilities in Austin, Texas.
Gina Raimondo, secretary of commerce, commented that the government’s recent investment in Samsung makes the United States the “only country on the planet that is home to all five leading-edge semiconductor manufacturers.” Intel, Taiwan Semiconductor Manufacturing Company, SK Hynix and Micron also previously committed to increasing microelectronics production in the U.S.
“Thanks to the bipartisan CHIPS and Science Act, we are unleashing the next generation of innovation, protecting our national security, and enhancing our global economic competitiveness,” Raimondo said.
Amkor Receives CHIPS Investment
Meanwhile, Amkor Technology was awarded up to $407 million in support of the company’s approximately $2 billion investment in a new advanced packaging and test facility located in Peoria, Arizona.
Amkor is the largest U.S.-based outsourced semiconductor assembly and test company. Its advanced packaging technology is critical to meeting the global demand for artificial intelligence chips.
According to Raimondo, the U.S. investment in Amkor ensures access to leading-edge packaging technologies and reinforces the nation’s position as a global technology leader for years to come. She added that Amkor’s Arizona activity will support critical industries, such as AI and high-performance compute.
TI to Build New Semiconductor Factories
Texas Instruments was granted $1.61 billion in direct funding for the construction of three new state-of-the-art facilities in Texas and Utah. The company already pledged $18 billion through the end of the decade for the upcoming manufacturing sites.
TI specializes in the production of mature-node chips, also called foundational chips, which are used in a wide range of electronic systems, including sensors, amplifiers and integrated circuits.
Highlighting the importance of the government’s incentive award to TI, Raimondo explained that mature-node semiconductor shortage during the pandemic led to supply chain disruptions.
“With this major investment in TI to expand U.S. capacity of these foundational semiconductors, we are strengthening our economic security, making our country safer, and creating thousands of jobs in Texas and Utah.” commented the official.
