In a significant move towards reviving semiconductor manufacturing in the United States, the White House has announced a whopping $6.4 billion in funding for Samsung. This funding is part of the Biden administration’s efforts to bring chipmaking back to the country and reduce America’s dependence on foreign manufacturers.
The focus of this funding will now shift towards areas like memory chips, which are crucial for powering artificial intelligence. This announcement comes as billions of dollars are potentially being distributed to companies in the semiconductor industry to boost domestic production.
A substantial portion of the $39 billion set aside for manufacturers has already been allocated to companies in Arizona, New Mexico, Ohio, and New York. Recent awards include $6.6 billion to Taiwan Semiconductor Manufacturing Company (TSMC) and $8.5 billion to Intel.
The funding comes from the Chips and Science Act, which allows the White House to spend around $50 billion on manufacturing and research in the semiconductor industry. Samsung plans to use the funding to build chip production facilities in Texas, focusing on leading-edge chips using advanced technologies.
President Biden emphasized the importance of these facilities for advanced technologies and national security. More awards are expected to be announced to support various aspects of the semiconductor industry, including memory chips and less advanced but still crucial chip production.
Efforts will also focus on the semiconductor supply chain and increasing the production of advanced logic chips in the US. There is a strong demand for funding in the semiconductor industry, with over $70 billion in requests for leading-edge funding exceeding the allocated amount.
Commerce Secretary Gina Raimondo highlighted the importance of packaging chips at the same site as manufacturing. Currently, even US-made chips are often shipped to Taiwan for packaging. This move towards self-sufficiency in chip manufacturing is seen as a significant step towards strengthening America’s technological capabilities and security.
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