US grants Samsung $6.4 billion to boost semiconductor production

The Biden administration will provide up to $6.4 billion in subsidies to Samsung, one of the world's largest chipmakers, the latest in a series of awards intended to support domestic semiconductor production point.

The money will help Samsung, the South Korean company, finance its new chip manufacturing center in Taylor, Texas, and expand an existing site near Austin. Samsung will now build an additional manufacturing plant and upgrade a factory under construction in Taylor. It will increase its investments in Texas to about $45 billion, up from $17 billion announced more than two years ago, administration officials said Sunday.

Federal officials said the grants would help create a U.S. platform for the development and production of advanced semiconductors. In addition to manufacturing chips, Samsung will now build a research and development facility in Taylor as well as a state-of-the-art factory to package them, the final step before the semiconductors can be used in electronic systems.

The announcement follows other awards that federal officials have given to semiconductor makers in recent weeks. The initiative is funded by the CHIPS Act, which a bipartisan group of lawmakers passed in 2022 to bolster the nation's supply of semiconductors, the critical components that power everything from phones and computers to cars and weapons systems . The legislation gave the Commerce Department $39 billion to distribute in grants to incentivize chipmakers to build and expand factories in the United States.

The effort aims to help reverse the decades-long decline in the U.S. share of global chip manufacturing. Although semiconductors were invented in the United States, only about 10% of the world's chips are currently manufactured in the United States.

Samsung's grant is the third major award aimed at increasing U.S. production of the most sophisticated semiconductors. Last week, federal officials announced they would provide up to $6.6 billion in subsidies to Taiwan Semiconductor Manufacturing Company, the leading maker of the most advanced chips. The administration also announced last month that Intel, a Silicon Valley chipmaker, would receive up to $8.5 billion in grants, which officials said would be the largest grant in the new program .

Samsung and TSMC have committed to producing two-nanometer chips, using what is currently the most advanced production technology in the world, in the United States in the coming years.

Samsung's investment also includes the construction of a new advanced packaging plant. Packaging typically involves wrapping chips in combinations of plastic and metal that allow them to connect to other devices in a system. New packaging technologies have become a focal point for the industry as more companies have started packing multiple small chips, sometimes called chiplets, into one package to increase computing power rather than trying to integrate more capacities into each semiconductor.

In addition, Samsung will build a research and development center that will study advances in manufacturing processes, which add computing power and storage capabilities to chips. Among the largest chipmakers, only Intel is currently conducting such research in the United States. Federal officials view Samsung's new research and development center as key to ensuring the nation's access to cutting-edge developments in the field, senior Biden administration officials said.

As part of this award, Samsung will also directly supply chips to the Ministry of Defense. The expansion of the Austin facility is intended to support the production of chips used in sectors critical to national security, including aerospace, defense and automotive.

In addition to receiving these grants, Samsung is expected to claim federal tax credits that could cover 25 percent of the cost of building and equipping Texas factories with production equipment.

Samsung's award brings the total announced federal grants to more than $23 billion. GlobalFoundries, Microchip Technology and BAE Systems received the top three awards.

The pandemic triggered a global semiconductor shortage that crippled major industries and highlighted vulnerabilities in the nation's chip supply chain, motivating lawmakers to pass the CHIPS Act.

Federal officials view the lack of domestic manufacturing capacity as a major national security risk, given that the components power missiles, satellites and fighter jets. Cutting-edge semiconductors are also essential for major technology industries like artificial intelligence.

Commerce Secretary Gina Raimondo pointed out that much of the semiconductor supply chain, from research and development to packaging, is concentrated in a few Asian countries.

That makes the U.S. supply chain incredibly vulnerable to disruption, Raimondo said on Sunday. It is dangerous and weakens our national and economic security.

Ms. Raimondo said the new investment would help create a cutting-edge semiconductor ecosystem in Texas and reestablish the United States as a leader in producing the most advanced semiconductors. In February, Ms. Raimondo said new investments would allow the United States to produce about 20% of the world's most advanced logic chips by the end of the decade. Currently, the United States produces none.

In November 2021, Samsung first announced that it would build a $17 billion semiconductor factory in Taylor, in response to pressure from the Biden administration and US customers to accelerate chip production in the United States. The company will now upgrade the manufacturing capacity of its facilities. In addition to four-nanometer chips, the first factory will now produce two-nanometer chips. Samsung is expected to open the first facility in 2026, administration officials said.

The second factory will also make two-nanometer chips and is expected to open in 2027, according to officials. The research and development facility is also expected to open in 2027, and the advanced packaging facility is expected to open in 2028.

Lael Brainard, director of the National Economic Council, said the Samsung award would be the third and final step in the president's plan to bring cutting-edge chip manufacturing back to the United States. About $40 million in grants will be set aside for the company to develop and train its workers, Ms. Brainard said. Samsung's investment is expected to create more than 4,500 manufacturing jobs and at least 17,000 construction jobs, federal officials said.

Like other winners, Samsung will have to follow certain steps before payments are made.

Samsung plays a particularly influential position in the industry by providing two major varieties of semiconductors. It is the largest maker of memory chips, which store data in smartphones, computers and other products. But the company also makes and designs logic chips, a category that includes processors that handle calculations in electronic hardware. And the company offers a service that makes such chips to order for other companies.

Most of Samsung's factories are in South Korea. But in 1996, the company built a factory in Austin that initially produced memory chips, then shifted its focus to logic chips for products such as Apple's iPhone. In recent years, Apple has frequently turned to TSMC to manufacture Apple-designed chips, although Samsung also has some of the most advanced production processes in the industry.

Sources 1/ https://Google.com/ 2/ https://www.nytimes.com/2024/04/15/us/politics/samsung-biden-administration-award-taylor-texas.html The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos