April 15 (Reuters) - The Biden administration will award
up to $6.4 billion in grants to South Korea's Samsung
to expand its chip production in central Texas as
part of a broader effort to expand U.S. chipmaking, the
Department of Commerce said on Monday.
The funding, from the 2022 Chips and Science Act, will boost
chip production for the aerospace, defense, and auto industries
and bolster national security, administration officials told
reporters.
"The return of leading-edge chip manufacturing to America is
a major new chapter in our semiconductor industry," said White
House National Economic Adviser Lael Brainard.
Reuters previously reported that the announcement was
forthcoming.
The subsidy will support two chip production facilities, a
research center and a packaging facility, said Commerce
Secretary Gina Raimondo on the call.
It will also enable Samsung to expand its Austin, Texas,
semiconductor facility, Raimondo said.
"(These investments) will allow the U.S. to once again lead
the world, not just in semiconductor design, which is where we
do now lead, but also in manufacturing, advanced packaging, and
research and development," Raimondo said.
Samsung is expected to invest roughly $45 billion in
constructing and expanding its Texas facilities through the end
of the decade, said senior administration officials.
The U.S. investment in chip production is meant to reduce
dependence on China and Taiwan.