Samsung ‘still’ in talks with the US for Texas semiconductor fab subsidies

Samsung is building a massive semiconductor manufacturing units in Taylor, Texas. The mass production at this facility was expected to begin in the second half of 2024, but it got delayed to 2025. Meanwhile, a new report reveals that Samsung is struggling to secure subsidies from the US gov for its Texas plant.

According to KoreaJoongAngDaily, Samsung is in a race with Intel and Micron Technology to get subsidies for its Taylor, Texas semiconductor fab in the US. Interestingly, negotiations with the state and federal governments over the pace and amount of funding are still underway.

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This might be the reason behind the delay in the mass production plan, which was previously slated to begin in 2024, but has been pushed back to 2025. It’s worth noting that the governmental funding is capped at $53 billion for all under the Chips and Science Act.

“The cost of building the plant keeps on rising,” said one source, who spoke on condition of anonymity due to the sensitivity of the issue. “Before the decision was made, the U.S. government assured Samsung of big financial support. But as the actual negotiation goes, the tax benefit was disappointing for Samsung.”