Samsung rushes to secure US CHIPS subsidies before Trump takes office

Samsung is rushing to secure its $6.4 billion subsidies under the US CHIPS Act. After Intel and TSMC, the Biden-led outgoing government finalized subsidies for a US-based firm, Micron.

On December 10, the US Department of Commerce announced that it would provide Micron with $6.165 billion in subsidies, the same amount as stated in the preliminary PMT signed in April.

Micron plans to use these subsidies to build semiconductor plants in New York and Idaho.

Samsung had agreed to invest $44 billion and receive $6.4 billion in subsidies. Meanwhile, Samsung and SK Hynix remain the only major companies yet to finalize their subsidy agreements.

Reports say South Korea’s Samsung Electronics and SK Hynix are in final negotiations with the US government to secure subsidies under the CHIPS and Science Act before Trump takes office.

Commerce Secretary Gina Raimondo previously stated that the goal is to allocate all subsidies before the end of this administration.

During his election campaigns, Donald Trump criticized the CHIPS subsidies introduced by Joe Biden. As Trump’s presidency nears, there’s a risk of cancellation of subsidies and increased tariffs.

Samsung plans to use the subsidy to build a semiconductor plant in Taylor, Texas. This foundry plant is expected to begin producing 2nm and 4nm products in 2026.

The foundry plant Samsung is building in the US relies heavily on securing customers. Given the current situation, it might not be easy to proceed with the investment as planned.

There is a possibility that the subsidies might decrease slightly from the one initially offered to Samsung. Intel has also agreed to receive $600 million less in subsidies than initially planned.

Via – Reuters