02:22 PM EDT, 04/15/2024 (MT Newswires) -- The US has reached a preliminary agreement with Samsung Electronics to provide $6.4 billion in direct funding under the CHIPS and Science Act to help strengthen the country's semiconductor supply chain, the US Commerce Department said Monday.

Samsung is planning to build a new chip manufacturing facility in Taylor, Texas, and to expand an existing facility in Austin, Texas, the Commerce Department said in a statement.

"This announcement will unleash over $40 billion in investment from Samsung, and cement central Texas's role as a state-of-the-art semiconductor ecosystem, creating at least 21,500 jobs and leveraging up to $40 million in CHIPS funding to train and develop the local workforce," US President Joe Biden said in the statement.

Samsung Electronics did not immediately respond to a request for comment by MT Newswires.