Samsung Electronics, one of the biggest chip-making firms worldwide, has grand plans to make advanced semiconductor chips in the US. To help with its plans, the US government had announced grants and tax sops. The South Korean firm is now close to getting a huge helping hand from the US government.
A $6 billion grant from the US could help Samsung expand chip-making facilities in the US
According to a report from Reuters, Samsung Electronics is on the verge of getting $6 billion from the US government. This grant will help the South Korean chip maker expand beyond the Taylor chip plant in Texas that it has already announced. It is also being reported that the cost of building the chip plant in Taylor was estimated to be $17 billion, but it has now risen to over $25 billion.
Chipmakers like Samsung and Intel have been waiting for grants and tax sops from the US government via its CHIPS Act to build advanced semiconductor chip plants in the country. However, the government has been quite slow in releasing those grants. TSMC, Samsung's primary rival, is close to getting a $5 billion grant from the US government.
Due to the geopolitical tensions between China and the US, the US has been attracting chipmakers to build their chip plants in the US. However, due to the lack of enough quality talent and rising building costs, chipmakers have been finding it hard to keep up with their promises.
Local production of semiconductor chips would ensure a steady supply for everything, from cars to gaming consoles and servers. US-based firms would not have to rely on foreign countries and companies for their chip needs. The US has also banned the export of advanced semiconductor chips to China's Huawei and chip-making equipment (or technologies) to Chinese firms.
