Commerce Department, Samsung Partner to Build Semiconductor Facilities in Texas

The United States is partnering with a leading technology firm to revitalize semiconductor production in Texas.

On Monday, the Department of Commerce announced a non-binding preliminary memorandum of terms with Samsung Electronics, offering up to $6.4 billion in direct funding under the CHIPS and Science Act to boost the U.S. semiconductor industry.

The South Korean conglomerate will set up shop in two locations in Central Texas, including a comprehensive advanced manufacturing ecosystem facility in Taylor and another factor in Austin that will produce fully depleted silicon-on-insulator process technologies, Commerce .gov reported.

Gina Raimondo, secretary of the Commerce Department, said that the CHIPS Act is a catalyst to encourage private investment in the local semiconductor sector, helping the U.S. remain the global leader in the semiconductor supply chain.

President Joe Biden signed the Act in 2022 to foster the domestic supply chain, create jobs and invest in ensuring that the nation has needed technologies during a critical time.

In October 2023, the White House announced 31 technology hubs eligible to receive funding worth up to $70 million from the Act, helping them advance various technologies, including quantum computing, precision medicine and other critical technologies.