Samsung Electronics in Line to Receive Over $6B in U.S. CHIP Act Subsidies

March 15, 2024 – According to Bloomberg reports, Samsung Electronics is poised to receive over 6 billion USD (approximately 43.2 billion CNY at current rates) in subsidies from the United States under the CHIP Act.

The South Korean tech giant is currently constructing a new facility in Texas and had initially planned to commence production of 4-nanometer chips by July of this year. However, recent updates suggest that the production may be delayed until 2025.

Samsung envisions building 11 chip manufacturing plants in Texas over the next few decades, in addition to expanding an existing complex in Austin.

Sources close to the matter have revealed that Samsung has reached a preliminary agreement with relevant U.S. authorities, and the expected 6 billion USD subsidy is not limited to the Texas plant project alone. However, the specific allocation of the funds remains undisclosed at this time.

Previously, it was reported that Intel had secured 10 billion USD in subsidies, while TSMC received 5 billion USD and Global Foundries garnered 1.5 billion USD. If Samsung Electronics indeed receives the additional 6 billion USD, it would leave a significantly smaller pool of subsidies available for other manufacturers.

The U.S. government has allocated 28 billion USD for investments in advanced lithography technology, with the aforementioned four projects already accounting for 22.5 billion USD.

While the U.S. authorities are preparing to allocate an additional 75 billion USD in the form of loans and prepayments, Samsung has privately indicated that it is not interested in this financing option. According to informed sources, U.S. officials are expected to finalize the subsidy amount for Intel next week, and other companies may receive approval shortly after.

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