US Government Plans to Provide Samsung Electronics with Over $6 Billion in Subsidies (Update)

The U.S. government plans to provide Samsung Electronics with subsidies exceeding $6 billion, Bloomberg News reported on the 15th, citing multiple sources. This is intended to help Samsung pursue additional projects beyond the previously announced Texas factory construction plan.

Bloomberg stated on the same day, "Samsung's subsidies will be among the support measures announced within weeks, including more than $5 billion in subsidies for Samsung's rival, TSMC."

Bloomberg explained, "Federal funding for Samsung will be accompanied by significant additional investments from Samsung. However, it is not yet clear where these additional investments will be made."

Samsung Electronics Texas Austin Factory. [Photo by Samsung Electronics]

Samsung Electronics currently operates a semiconductor factory in Austin, Texas, and has announced plans to invest approximately $17 billion to expand facilities in the nearby city of Taylor, Texas. Bloomberg reported that this factory was originally scheduled to begin mass production this year, but the timeline has recently been delayed to next year.

Earlier, Bloomberg reported that Taiwan semiconductor company TSMC is expected to receive more than $5 billion in subsidies under the U.S. CHIPS Act, while Samsung Electronics' subsidy amount was projected to be in the tens of billions of dollars. If Samsung's support amount is confirmed as is, it would receive significantly more subsidies than TSMC. For U.S. company Intel, projections suggest it may receive more than $10 billion.

Meanwhile, the U.S. enacted the CHIPS Act in 2022 to secure semiconductor production bases within the country. It includes $39 billion in direct subsidies and loan support worth approximately $75 billion.

Bloomberg reported that the Department of Commerce will announce finalized plans starting with Intel next week. It is also reported that Samsung has expressed that it does not require loan support in addition to the subsidies.

This content was produced with the assistance of AI translation services.