U.S. Boosts Chip Production with $6.355 Billion in Awards to Samsung and Texas Instruments

The U.S. Commerce Department announced significant financial awards to Samsung Electronics and Texas Instruments to enhance semiconductor production. Samsung will receive up to $4.745 billion, a reduction from a preliminary $6.4 billion, while Texas Instruments will get $1.61 billion. These investments align with the U.S.'s strategic semiconductor industry enhancement.

The U.S. Commerce Department has finalized a substantial financial package aimed at bolstering semiconductor production in the country. On Friday, an award of up to $4.745 billion was earmarked for South Korea's Samsung Electronics, with an additional $1.61 billion designated for Texas Instruments. These awards reflect a shift from initial plans, as Samsung's package was reduced by approximately $1.7 billion due to recalibrated investment strategies.

An official from the Commerce Department indicated that this adjustment aligns with both market conditions and the investment plans executed by Samsung. The company aims to channel $37 billion into two chip production facilities, a research hub, and a packaging plant in the U.S. by 2030. This decision marks a revision from a previously announced $45 billion outlay.

Meanwhile, Texas Instruments committed to investing over $18 billion in new factories across Texas and Utah, promising 2,000 new manufacturing jobs. These developments come amid broader national strategies, including Congress's approval of a $39 billion semiconductor subsidy program last year, to secure and expand the United States' semiconductor manufacturing capabilities.

(With inputs from agencies.)