The United States government will soon declare a victory over “Made in USA” chips by providing over $6 billion of on-the-spot funding for its new Samsung-owned chip factory in Taylor, Texas. The newspaper reports data that is not only crucial for expanding Samsung’s project but also serves as the drawing card that brings more US investment from the world’s largest memory chip maker.
This information hits hard on the worldwide chip shortage that impacts smartphones, vehicles, and more. Thus, the country is looking for ways to boost US domestic production of these chips, which will result in reducing its dependence on foreign players in the industry and improving its technological self-reliance. The huge $6 billion grant approved for the IC sector is a small part of the broader picture, but the marquee game will be played tomorrow by the Commerce Department with similar grants to other chip giants in the coming weeks.
Still, this stuff isn’t just altruistic. Such large amounts of receivables can mostly be offered with terms and conditions. In this case, Samsung spent additional money on the Texas plant, adding another burden to this international corporation that until now had been quite reluctant to invest so heavily in the US chip market. This strategic collaboration could play into the hands of the US manufacturer, ensuring the availability of those chips for the US as well as strengthening Samsung’s position in the important NA market.
Now, while Samsung has not yet conducted this acquisition, the news shows how the United States is demonstrating progress toward this country’s chip-making independence. The final project is expected to be finished in 2025 with financial sponsorship and possible expansion compared to the original plan to build the first Texas plant. While the US and Samsung will undoubtedly have their reasons for delaying the deal, this partnership has the potential to play a massive role when it comes to chip production in the US.
