The Biden administration has agreed to spend around $6.4 billion to directly fund Samsung Electronics' research and chipmaking cluster in Texas.
The Commerce Department announced that the administration's support is part of the CHIPS and Science Act signed by President Joe Biden in 2022.
US Government Funds Samsung's Chipmaking in Texas
In a statement, the Commerce Department shared that the proposed project is expected to introduce Texas to a high-quality semiconductor ecosystem. "It puts us on track to hit our goal of producing 20% of the world's leading-edge chips in the United States by the end of the decade," said Commerce Secretary Gina Raimondo.
Samsung in Taylor, Texas will build two factories that will handle the production of four two-nanometer chips. A separate factory will be assigned for research and development and a chip components packaging facility.
The electronics giant is also set to claim an investment tax credit from the U.S. Treasury Department. The funds will also extend to the existing Samsung facility in Austin, Texas.
US Government Expects More Jobs for New Project
Raimondo also stated that the project will open at least 17,000 construction jobs for people in Texas. In addition, more than 4,500 manufacturing jobs will be created upon its creation.
According to the government, the first factory is targeted to be operational in 2026, while the second factory is expected to be functional in 2027.
Once the project is completed, Samsung will be assigned to manufacture chips in Austin directly for the Defense Department. Currently, the government is keen on tracking access to advanced technology due to national security concerns and competition against China.
Intel and Taiwan Semiconductor Manufacturing Co. also received support from the government to initiate projects across the country.
