*

US finalizes three chips awards worth up to $6.75 billion

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Samsung's award cut by about $1.7 billion to $4.745

billion

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Commerce has finalized more than $33 billion out of $36

billion

in awards announced

(Adds third award in headline, paragraph 2, adds Samsung

comment in paragraph 5)

By David Shepardson

WASHINGTON, Dec 20 (Reuters) - The U.S. Commerce

Department said on Friday it was finalizing an award of up to

$4.745 billion to South Korea's Samsung Electronics ( SSNLF )

and up to $1.61 billion for Texas Instruments ( TXN ) to expand chips

production.

The department also finalized an award of up to $407 million

to help fund Amkor Technology ( AMKR ) planned $2 billion

advanced semiconductor packaging facility in Arizona, which is

set to be the largest of its kind in the U.S.

The Samsung award is about $1.7 billion smaller than the

preliminary award announced in April of up to $6.4 billion and

reflects its revised smaller investment plans, the department

said.

A Commerce spokesperson said the department "changed this

award to align with market conditions and the scope of the

investment the company is making."

A Samsung spokesperson said its "mid-to-long-term

investment plan has been partially revised to optimize overall

investment efficiency" but declined to disclose details of its

agreement with the Commerce Department.

In April, administration officials said Samsung planned to

invest roughly $45 billion to build two chip production

facilities, a research center and a packaging facility by 2030.

On Friday, Commerce said Samsung plans to invest $37 billion and

complete the projects by the end of the decade.

Texas Instruments ( TXN ) has pledged to investment more than $18

billion through 2029 in two new factories in Texas and one in

Utah, which are expected to create 2,000 manufacturing jobs. The

company is getting $900 million for its Texas operations and

$700 million.

Amkor's ( AMKR ) Arizona plant when fully operational will

package and test millions of chips for autonomous vehicles,

5G/6G and data centers. Apple ( AAPL ) will be its first and

largest customer with the chips produced at a nearby Taiwanese

chipmaker TSMC facility.

Congress in August 2022 approved a $39 billion subsidy

program for U.S. semiconductor manufacturing and related

components along with $75 billion in government lending

authority.

Last month, Commerce finalized an award of up to $7.86

billion for Intel ( INTC ) down from $8.5 billion announced in

March after the California-based chips maker won a separate $3

billion award from the Pentagon.

Commerce has now finalized the largest awards it offered

earlier this year including this week, finalizing up to $458

million for SK Hynix ( HXSCF ) in Indiana. In total, Commerce

has finalized over $33 billion of the over $36 billion in

proposed incentives funding.

"With this investment in Samsung, the U.S. is now officially

the only country on the planet that is home to all five

leading-edge semiconductor manufacturers," said Commerce

Secretary Gina Raimondo.