US Grants $6.75 Billion in Chips Awards to Samsung, Texas Instruments, and Amkor for Manufacturing Boom

The US Commerce Department has finalized $6.75 billion in chips funding, granting billions to Samsung, Texas Instruments, and Amkor in a major push to secure domestic semiconductor leadership.

Samsung Secures Largest Share of U.S. Semiconductor Funding

On Friday, the U.S. Commerce Department announced that it was nearing completion of a deal that would expand chip production at Texas Instruments to a maximum of $1.61 billion and Samsung Electronics of South Korea to a maximum of $4.745 billion, Reuters reports.

Additionally, the government has approved a $407 million award to assist finance Amkor Technology's proposed $2 billion advanced semiconductor packaging factory in Arizona. This facility is expected to surpass all others in the United States in terms of size.

According to the department, Samsung's amended investment intentions resulted in an award that is approximately $1.7 billion smaller than the initial grant announced in April, which was up to $6.4 billion.

Samsung's Revised Investment Plans Reflect Market Realities

Commerce Department spokeswoman: "changed this award to align with market conditions and the scope of the investment the company is making."

Speaking on behalf of Samsung, a representative claimed that the company's "mid-to-long-term investment plan has been partially revised to optimize overall investment efficiency" but refused to go into specifics about the deal.

Two chip manufacturing facilities, a research center, and a packaging facility would be constructed by 2030, according to administration officials who stated in April that Samsung intended to spend about $45 billion on the project. Samsung intends to spend $37 billion and finish the projects by the end of the decade, according to Commerce, which announced the plans on Friday.

Texas Instruments Expands U.S. Manufacturing with $18 Billion Investment

A total of three new plants—one in Utah and one in Texas—will get over $18 billion in funding from Texas Instruments between 2019 and 2029. These plants will generate an anticipated two thousand manufacturing jobs. The business will receive $700 million in addition to $900 million for its activities in Texas.

Upon completion, Amkor's Arizona facility will be able to package and test millions of chips for use in 5G/6G networks, data centers, and autonomous vehicles. The chips will be manufactured in a nearby plant in Taiwan by TSMC, and Apple will be the facility's first and biggest customer.

Amkor Facility Aims to Establish U.S. Semiconductor Supply Chain

As stated by Amkor CEO Giel Rutten, the facility "will serve as a critical cornerstone in establishing a robust semiconductor manufacturing supply chain within the United States."

Along with $75 billion in authorized government loans, Congress authorized a $39 billion subsidy scheme in August 2022 to support U.S. semiconductor manufacturing and associated components.

In March, Intel was awarded $8.5 billion; but, this month, the award was reduced to $7.86 billion when the Commerce Department finalized a separate $3 billion award to the California-based chips maker.

Up to $458 million for SK Hynix in Indiana was finalized this week, one of the largest awards granted earlier this year by Commerce. Of the more than $36 billion in incentive financing that was originally requested, the Department of Commerce has finalized more than $33 billion, Investing.com shares.

U.S. Now Home to Leading Semiconductor Manufacturers

"With this investment in Samsung, the U.S. is now officially the only country on the planet that is home to all five leading-edge semiconductor manufacturers," said Gina Raimondo, Commerce Secretary.