US President Joe Biden’s administration has reached an agreement to provide up to US$6.4 billion in direct funding for Samsung Electronics Co to develop a computer chip manufacturing and research cluster in Texas.
The funding announced yesterday by the US Department of Commerce is part of a total investment in the cluster that, with private money, is expected to exceed US$40 billion.
The government support comes from the CHIPS and Science Act, which Biden signed into law in 2022 with the goal of reviving the production of advanced computer chips in the US.
Photo: AFP
“The proposed project will propel Texas into a state-of-the-art semiconductor ecosystem,” US Secretary of Commerce Gina Raimondo said on a call with reporters. “It puts us on track to hit our goal of producing 20 percent of the world’s leading edge chips in the United States by the end of the decade.”
Raimondo said she expects the project to create at least 17,000 construction jobs and more than 4,500 manufacturing jobs.
Samsung’s cluster in Taylor, Texas, would include two factories that would make 4-nanometer and two-nanometer chips. There would also be a factory dedicated to research and development, as well as a facility for the packaging that surrounds chip components.
The first factory would begin production in 2026, with the second starting in 2027, the US government said.
The funding would also expand an existing Samsung facility in Austin, Texas.
As a result, Samsung would be able to manufacture chips in Austin directly for the US Department of Defense, White House National Economic Council Director Lael Brainard said.
Access to advanced technology has become a major national security concern amid competition between the US and China.
In addition to the US$6.4 billion, Samsung has indicated it would also claim an investment tax credit from the US Department of Treasury.
The US government has previously announced terms to support other chipmakers, including Taiwan Semiconductor Manufacturing Co (台積電) and Intel Corp, in projects spread across the country.
Taiwan’s technology protection rules prohibits Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) from producing 2-nanometer chips abroad, so the company must keep its most cutting-edge technology at home, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. Kuo made the remarks in response to concerns that TSMC might be forced to produce advanced 2-nanometer chips at its fabs in Arizona ahead of schedule after former US president Donald Trump was re-elected as the next US president on Tuesday. “Since Taiwan has related regulations to protect its own technologies, TSMC cannot produce 2-nanometer chips overseas currently,” Kuo said at a meeting of the legislature’s
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
RSS