Samsung nears to get $6.4 billion US CHIPS subsidy

South Korea’s SK hynix is the latest beneficiary of the US CHIPS subsidy. Before Donald Trump takes over as US President, the outgoing President Joe Biden is clearing US CHIPS subsidies promised to vendors and Samsung is next in the line.

As Samsung’s Taylor investment nears its final negotiations, this is expected to resolve uncertainties and serve as a key turning point to accelerate investments. Samsung may soon finalize its CHIPS subsidies with the US govt.

Concerns over the potential impact of President Donald Trump’s re-election on foreign semiconductor company subsidies have led the Commerce Department to push for finalizing support contracts by the end of the year.

Samsung announced plans to invest over $40 billion in Taylor, Texas. The company has already signed a preliminary agreement with the US government regarding subsidies, but the exact amount has not yet been confirmed.

Since Samsung signed the preliminary agreement this year, it’s unlikely there will be significant obstacles in receiving the subsidy. The company may announce the recipient of the subsidy as soon as it finals the investment deal with the US govt.

It is the only major semiconductor production company to decide on a U.S. investment. The subsidy promised by the Department of Commerce is $6.4 billion, which accounts for 16% of Samsung’s expected investment.

“With this investment in SK hynix, we are solidifying America’s AI hardware supply chain in a way no other country on Earth can match, creating hundreds of jobs in Indiana, and ensuring the Hoosier State plays an important role in advancing U.S. economic and national security.” – U.S. Secretary of Commerce Gina Raimondo