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US Grants Samsung $6.4B to Manufacture Semiconductors in Central Texas

US Grants Samsung $6.4B to Manufacture Semiconductors in Central Texas

The United States government is awarding up to $6.4 billion in direct funding to Samsung.

On Monday, U.S. Secretary of Commerce Gina Raimondo visited the company’s new semiconductor manufacturing facility in Taylor, Texas, where she announced the investment.

“We’re saying for the first time ever, Samsung can conduct in the United States of America core research and development, support the future and manufacturing at scale and advanced packaging all in Texas,” Raimondo told reporters.

The federal investment will come from the CHIPS and Science Act that President Joe Biden signed into law in 2022. The bipartisan legislation provides funding to strengthen U.S. manufacturing and the supply chain of semiconductors, ending reliance on Asia for the crucial technology.

Samsung’s semiconductor plant in central Texas will produce processors based on 2-nanometer and 4 nm manufacturing technologies.

The size of a chip’s transistors, measured in nanometers, determines the number of transistors packed into the processor. The smaller the dimensions, the more significantly they enhance the processor’s performance.

The South Korean company’s 4 nm node entered mass production in 2021, while its 2 nm node is slated for launch in 2025.

According to ZDNet, Samsung’s 2 nm processors will be introduced in mobile devices.

Samsung has been manufacturing in Texas for nearly three decades. In 1996, the electronics company invested $18 billion to open two fabs in Austin. 

The company says it plans to invest over $40 billion in the region in the future.

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