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Samsung is expected to put about $27 billion toward making high-end computer chips in the US, bringing the South Korean firm's total Texas chip manufacturing investment to $44 billion, The Wall Street Journal reports, citing sources familiar with the plans.
The funding will go toward building a second chip factory and packaging facility in Taylor, Texas, which is near Austin. Samsung is also expected to conduct more research and development in the US as well. Samsung previously invested about $17 billion into its first Taylor semiconductor factory in 2021, with the WSJ reporting at the time that the first location would create 1,800 jobs.
The city of Taylor gave Samsung a decade of massive property tax breaks as part of the first deal, and photos uploaded to Google Maps' listing for the first location shows the factory still under construction as of June 2023. NBC's KXAN reported in February that the first Samsung Taylor factory will begin operations by July 1 this year, citing a conversation a county judge had with Samsung's chief financial officer.
The federal government is also likely to fund Samsung's next Texas chip factory in one of the biggest awards ever granted to a company, according to the WSJ. Notably, Intel, one of the few other firms making high-profile chips, just received a $8.5 billion grant from the US Department of Commerce as well as another $11 billion in loans last month to expand its semiconductor operations in the US. It's currently unknown whether Samsung might receive more or less funding, though.
All this federal funding comes years after Intel, AMD, and Nvidia asked the US government for money back in 2021. In 2022, President Biden then signed the CHIPS Act in an effort to bolster US-based semiconductor production, create jobs, and remain competitive on the international tech stage. The government also restricted US-based firms from exporting AI chips to China, citing national security concerns.
Samsung's US chip funding announcement is expected to occur on April 15.