Samsung Electronics is reportedly doubling its investment in the US to build and package advanced semiconductor chips. According to a report from The Wall Street Journal, Samsung has decided to increase its investment to a whopping $44 billion. That's $22 billion on top of what the company has already invested.
Samsung will build a chip plant, a chip packaging factory, and a research space in Taylor, Texas
The South Korean tech giant will build one more semiconductor chip plant, a chip packaging plant, and a chip research and development space in Texas, USA. The company's first chip plant, whose construction began in 2021, is situated in Taylor, Texas. It hasn't started operations yet, but the production of crucial logic chips is expected to start at that plant later this year. The new chip plant and chip packaging site will also be near the company's existing chip plant.
The US government plans to release another $6 billion to Samsung Electronics as a part of the US CHIPS Act. This is on top of what the federal government has already offered as tax incentives to the South Korean firm. The company hasn't revealed which process node or type of chips will be made in its upcoming chip plant.
After its geopolitical tensions with China escalated, the US banned exporting advanced semiconductor chips and chip designing and manufacturing technologies to be sold to Chinese firms like Huawei. Instead, it is trying to reduce its reliance on China-based chip suppliers and is luring chip giants to make their chip plants in the US.
