Biden admin gives billions to Samsung for Texas chip plant

The Biden administration announced Monday a multibillion-dollar agreement with Samsung, which will invest in semiconductor chip manufacturing in Texas.

The $6.4 billion preliminary deal is the latest agreement struck using funds from the CHIPS and Science Act, a bipartisan law Biden signed in 2022.

Samsung is expected to invest more than $40 billion in the region over the next several years to build out new Texas facilities in Taylor and Austin, our colleague Brett Samuels reported.

The Biden administration said the deal is expected to support more than 20,000 jobs through construction and manufacturing positions.

“This announcement, will unleash over $40 billion in investment from Samsung, and cement central Texas’s role as a state-of-the-art semiconductor ecosystem, creating at least 21,500 jobs and leveraging up to $40 million in CHIPS funding to train and develop the local workforce,” Biden said in a statement.

“These facilities will support the production of some of the most powerful chips in the world, which are essential to advanced technologies like artificial intelligence and will bolster U.S. national security,” he continued.

The investments in Austin will expand an existing facility to support production of chip technology used in the aerospace, defense and automotive industries.

The investments in Taylor will allow for construction of a comprehensive advanced manufacturing system that will allow Samsung to create leading-edge chips and for advanced packaging research and development.

The semiconductors manufactured in Taylor would be used for communications and the automotive and defense industries, the Biden administration said.