Samsung Electronics Receives Over $6 Billion in US Subsidies... Additional Investment Expansion Beyond Taylor (Comprehensive)

Bloomberg Citing Multiple Sources
Subsidy Amount Increased Beyond Industry Expectations
"Condition Exceeds Texas Project Investment"
Subsidy Payment Announcement Expected Late This Month

Bloomberg News reported that the United States plans to provide Samsung Electronics with subsidies exceeding $6 billion (approximately 7.96 trillion KRW). According to the report, this amount is larger than what the semiconductor industry had anticipated. It is evaluated that the subsidy scale may have increased as Samsung Electronics proposed additional investment plans beyond its existing production facility investments. The subsidy amount could be larger than that of Taiwan's foundry (semiconductor contract manufacturing) company TSMC.

On the 14th (local time), Bloomberg cited multiple sources and reported, "The U.S. Department of Commerce will announce subsidies to several companies, including Taiwan's TSMC, within the next few weeks." Although there had been forecasts that the subsidy scale could be in the tens of billions of dollars, this is the first time concrete figures have been revealed.

Bloomberg explained, "The U.S. plans to support Samsung Electronics with more than $6 billion to enable Samsung to expand its investment beyond the Texas project it has already announced." There was a previous report that Samsung Electronics was negotiating with the U.S. Department of Commerce on the condition of attracting additional investments to increase the subsidy scale, which is interpreted as a high possibility that the deal has been finalized.

The semiconductor industry responded, "We need to wait for the official announcement from the U.S. government, but the scale is larger than industry expectations," and added, "There will be keen interest in how Samsung Electronics discussed attracting additional investments." It has not been clearly disclosed which regions within the U.S. Samsung Electronics will make additional investments.

If Samsung Electronics receives more than $6 billion, the subsidy scale could surpass that of TSMC. Locally, there have been forecasts that TSMC could receive subsidies exceeding $5 billion. For U.S. semiconductor company Intel, there are also expectations that it will receive more than $10 billion. Currently, the companies announced by the U.S. Department of Commerce to receive subsidies include domestic companies GlobalFoundries and Microchip Technology, as well as the British company BAE Systems.

Inside view of the line at Samsung Electronics Pyeongtaek Campus / Photo by Samsung Electronics

Samsung Electronics had concerns as the subsidy announcement was delayed beyond initial expectations and investment amounts increased due to rising construction costs, but now appears somewhat relieved. Samsung Electronics forecasts that mass production at the Taylor plant will be possible by the end of this year, but recently the industry has speculated that this timeline may be postponed to next year.

Previously, Samsung Electronics announced in 2021 that it would invest approximately $17 billion to establish a foundry plant in Taylor, Texas. Based on this, it applied for subsidies under the U.S. CHIPS and Science Act (CSA) last year. The company currently operates a foundry plant in Austin, Texas, and once the Taylor plant is completed, it will be the second foundry production facility established in the U.S.

The South Korean government expects the U.S. government to announce the subsidy scale for Samsung Electronics by the end of this month. Jeong In-kyo, Director General for Trade Negotiations at the Ministry of Trade, Industry and Energy, who visited the U.S. to attend the Korea-U.S. Free Trade Agreement (FTA) Joint Committee, recently told domestic reporters regarding the U.S. Department of Commerce’s subsidy payment to Samsung Electronics, "I think the announcement will be made by the end of March."

Samsung Electronics stated that it is "unable to confirm" regarding the Bloomberg News report.

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