Washington, D.C. – The White House recently announced plans to allocate up to $6.4 billion for chipmaking to Samsung, a significant move in the Biden administration’s strategy to revive semiconductor manufacturing in the United States. While the focus has primarily been on advanced logic semiconductors, the new initiative will shift attention to memory chips, crucial for powering artificial intelligence.
A total of $23 billion out of the allocated $39 billion has already been designated to support manufacturers across states like Arizona, New Mexico, Ohio, and New York. In addition to Samsung, other notable recipients include Taiwan Semiconductor Manufacturing Company (TSMC) and Intel, receiving $6.6 billion and $8.5 billion, respectively.
Funded by the Chips and Science Act, the White House plans to invest around $50 billion to boost both chip manufacturing and research in the U.S. This week’s announcement concerning Samsung will aid in establishing new facilities in Texas, specifically in Austin and Tyler, to house two chip production manufacturing facilities, a research center, and a packaging facility.
These facilities are expected to come online gradually by the end of the decade and will focus on producing leading-edge chips, including those using the two nanometer process, a highly advanced technology globally. President Biden emphasized the importance of these facilities, stating that they would support the production of some of the most powerful chips crucial for technologies like artificial intelligence and national security.
The remaining part of the fund aims to stimulate other aspects of the semiconductor industry, such as leading edge memory chips which play a significant role in artificial intelligence. The supply chain for semiconductors is also a top priority for future awards, with a focus on ensuring the U.S. produces 20% of the world’s most advanced logic chips by the end of the decade.
Commerce Secretary Gina Raimondo highlighted the significance of semiconductor packaging, noting that even chips manufactured in the U.S. are often sent to Taiwan for packaging. The administration revealed that over $70 billion in requests for leading edge funding have been received, surpassing the $39 billion allocated for the manufacturing program.
Overall, the initiative to revitalize semiconductor manufacturing in the U.S. is making substantial progress, with investments and awards being made to key industry players to strengthen the country’s position in chip production and innovation.