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Breaking: Samsung secures $4.7 billion US CHIPS incentives with significant reduction
Just in: The US Department of Commerce announced that it would provide Samsung with incentives of $4.745 billion under the CHIPS Act. It is also highlighted that the Taylor plant is expected to begin operations in 2026.
Samsung Electronics has secured CHIPS incentives of $4.7 billion from the US Biden govt. The investment scale for the Taylor plant has been adjusted downward from the initial plan, resulting in a reduction of about $1.66 billion in subsidies.
This amount is about 25.8% lower than the $6.4 billion subsidy announced when the preliminary memorandum of understanding was signed. The reduction in subsidies is due to the downsizing of Samsung’s investment.
The Department of Commerce also revealed that based on due diligence, Samsung plans to invest $37 billion in the Taylor facility, where two semiconductor foundry fabs and research and development (R&D) fabs will be built.
This is a reduction from the previously announced plan of over $40 billion in investments by 2030. The original investment was raised from $17 billion but has now been adjusted in line with market conditions.
Meanwhile, Samsung’s subsidy-to-investment ratio remains high at about 13% compared to other companies like TSMC, Intel, and Micron. However, it remains to be seen whether the forthcoming Trump administration will execute the subsidies.
“Our agreement with the U.S. Government today under the CHIPS and Science Act represents another milestone as we continue to invest and build a state-of-the-art semiconductor ecosystem in the U.S. We look forward to further collaboration with our American partners to meet the evolving needs of the upcoming AI-driven era,” said Young Hyun Jun, Vice Chairman and CEO of Device Solutions Division at Samsung Electronics.
Samsung Taylor Texas | Image: Samsung
