WASHINGTON, April 8 (Reuters) -

The Biden administration plans to announce it is awarding

more than $6 billion to South Korea's Samsung next

week to expand its chip output in Taylor, Texas, as it seeks to

ramp up chipmaking in the U.S., two people familiar with the

matter said.

The subsidy, which will be unveiled by Commerce Department

Secretary Gina Raimondo, will go toward construction of four

facilities in Taylor, including one $17 billion chipmaking plant

that Samsung announced in 2021, another factory, an advanced

packaging facility and a research and development center, one of

the sources said.

It will also include an investment in another undisclosed

location, the source said, adding that Samsung will more than

double its U.S. investment to over $44 billion as part of the

deal.

The Commerce Department and Samsung declined to comment.

Texas Governor Greg Abbott's office did not respond to requests

for comment.

One of the sources said it would be the third largest of the

program, just behind Taiwan's TSMC, which was awarded

$6.6 billion on Monday and agreed to expand its investment by

$25 billion to $65 billion and to add a third Arizona factory by

2030.

The announcement will cap off a string of major Chips and

Science grants in quick succession as the U.S. seeks to expand

domestic chip production and lure away capital that might have

been used to build plants in China and the region.

Congress in 2022 approved the Chips and Science Act to boost

domestic semiconductor output with $52.7 billion in research and

manufacturing subsidies. Lawmakers also approved $75 billion in

government loan authority, but one of the sources said Samsung

plans to take no loans.

The CHIPS Act's goal is to reduce reliance on China and

Taiwan, as the share of global semiconductor manufacturing

capacity in the U.S. has fallen from 37% in 1990 to 12% in 2020,

according to the Semiconductor Industry Association.

U.S. President Joe Biden will not attend the event, the two

people said. He faces a tough fight to win a second term in

November against former President and Republican rival Donald

Trump. Greg Abbott, the Republican governor of Texas was invited

to attend, one of the people added.

While both TSMC and Intel ( INTC ), which was awarded $8.5

billion to expand its U.S. chip output last month, will expand

production in the key swing state of Arizona, Samsung' expansion

in reliably Republican Texas is seen as less likely to help

Biden at the polls.