Biden administration agrees to provide billions to Samsung to expand chip manufacturing in Texas

The Biden administration on Monday announced a multibillion-dollar agreement with Samsung to invest in semiconductor chip manufacturing in Texas.

The $6.4 billion preliminary agreement is the latest agreement signed using funding from the CHIPS and Science Act, the bipartisan legislation Biden signed into law in 2022. Samsung is expected to invest more than $40 billion in the region over the next few years to build new facilities in Texas in Taylor and Austin.

The Biden administration said the deal is expected to support more than 20,000 jobs through construction and manufacturing jobs.

“This announcement unlocks more than $40 billion in investment from Samsung, strengthens Central Texas’ role as a leading semiconductor ecosystem, creates at least 21,500 jobs, and provides up to $40 million in CHIPS The funds will be used to train and develop semiconductor technology for the local workforce,” Biden said in a statement. “These facilities will support the production of the world’s most powerful chips, which are essential for advanced technologies such as artificial intelligence, and strengthen America’s national security.”

The investment in Austin will expand existing facilities to support production of chip technologies used in the aerospace, defense and automotive industries.

The investment in Taylor will enable Samsung to build a comprehensive advanced manufacturing system that will enable it to manufacture cutting-edge chips and conduct advanced packaging research and development. The Biden administration says semiconductors made at Taylor will be used in the communications, automotive and defense industries.

The Texas investment is the latest example of the Biden administration touting the significant economic benefits of the CHIPS Act. The White House announced five other preliminary agreements with companies for CHIPS funding, including Intel, GlobalFoundries, and Bae Systems.

Biden has repeatedly emphasized the importance of chips and scientific law, citing the widespread use of microchips in everyday technology such as phones, cars and home appliances. Officials said the law is critical to ramping up domestic chip production to reduce America’s dependence on overseas supply chains.