Samsung, Texas Instruments Secure Billions in CHIPS Act Funding

Samsung Electronics and Texas Instruments have finalized their CHIPS Act awards, securing billions in funding to expand their semiconductor manufacturing facilities in the United States. This significant investment, totaling up to $6.4 billion for Samsung and $1.6 billion for Texas Instruments, will bolster domestic chip production, create jobs, and strengthen the U.S.'s competitive edge in the global semiconductor market.

Samsung's $6.4 billion award, supplemented by a $37 billion private investment, will enable the company to develop a state-of-the-art chip manufacturing and research cluster in Texas. This expansion will create at least 17,000 construction jobs and more than 4,500 manufacturing jobs, propelling Texas into a state-of-the-art semiconductor ecosystem. The first factory is expected to be operational in 2026, with the second following in 2027.

The funding will also expand Samsung's existing Austin facility and enable the company to manufacture chips directly for the Defense Department, addressing national security concerns. Additionally, Samsung will claim an investment tax credit from the U.S. Treasury Department.

Texas Instruments' $1.6 billion award will support the company's efforts to build new facilities, growing its U.S. capacity for current-generation semiconductors. This investment will help alleviate shortages experienced during the COVID-19 pandemic supply chain disruptions.



The finalization of these CHIPS Act awards marks a significant shift in global supply chain dynamics. With the U.S. aiming to produce 20% of the world's leading-edge chips by the end of the decade, this investment will strengthen its competitive edge in the global semiconductor market. The increased domestic production of advanced chips will reduce dependence on foreign suppliers, bolster national security, and create tens of thousands of jobs.

Samsung's dual focus on memory and logic chips sets it apart from competitors like Intel and TSMC. This diversification allows Samsung to cater to a broader range of customers and reduces its reliance on a single market segment. By integrating both memory and logic chip production, Samsung can optimize its supply chain, reduce transportation costs, and improve efficiency. This strategic move not only strengthens Samsung's competitive position but also supports the U.S.'s national security and technological edge.

As Samsung and Texas Instruments expand their U.S. operations, they will likely attract more suppliers and talent, further solidifying their competitive edge. The increased investment in domestic semiconductor production, facilitated by the CHIPS and Science Act, will help the U.S. maintain its scientific and technological edge amidst intensifying competition with China.

In conclusion, Samsung Electronics and Texas Instruments' finalized CHIPS Act awards signal a significant boost for domestic semiconductor manufacturing. This investment will create jobs, strengthen the U.S.'s competitive edge, and reduce dependence on foreign suppliers. As the global semiconductor market continues to evolve, these strategic moves by Samsung and Texas Instruments will shape the competitive landscape and drive innovation in the industry.