By David Shepardson
WASHINGTON (Reuters) – The U.S. Commerce Department said on Friday it is finalizing an award of up to $4.745 billion to South Korea’s Samsung Electronics (KS:) and up to $1.61 billion to Texas Instruments (NASDAQ:) to expand chip production.
The department also finalized an award of up to $407 million to help fund Amkor technology (NASDAQ:)’s planned $2 billion advanced semiconductor packaging facility in Arizona, expected to be the largest of its kind in the US
The Samsung price is about $1.7 billion smaller than the preliminary price of up to $6.4 billion announced in April and reflects revised smaller investment plans, the department said.
A Commerce spokesperson said the department has “changed this award to reflect market conditions and the size of the investment the company is making.”
A Samsung spokesperson said its medium- to long-term investment plan has been partially revised to optimize overall investment efficiency, but declined to reveal details of the agreement with the Commerce Ministry.
In April, government officials said Samsung plans to invest about $45 billion to build two chip manufacturing facilities, a research center and a packaging facility by 2030. On Friday, Commerce said Samsung plans to invest $37 billion and complete the projects by the end of complete the month. decade.
Texas Instruments has pledged to invest more than $18 billion through 2029 in two new factories in Texas and one in Utah, expected to create 2,000 manufacturing jobs. The company will receive $900 million for its Texas operations and $700 million.
Amkor’s Arizona facility, once fully operational, will package and test millions of chips for autonomous vehicles, 5G/6G and data centers. Apple (NASDAQ:) will be the first and largest customer of the chips produced at a nearby Taiwanese chipmaker TSMC factory.
Amkor CEO Giel Rutten said the facility “will serve as a critical cornerstone in establishing a robust supply chain for semiconductor manufacturing in the United States.”
Congress approved a $39 billion subsidy program for U.S. semiconductor manufacturing and related components in August 2022, along with $75 billion in government loans.
Last month, Commerce finalized a price of up to $7.86 billion for Intel (NASDAQ:), down from the $8.5 billion announced in March after the California-based chipmaker made a separate $3 billion award of the Pentagon had won.
Commerce has now completed the largest awards it offered earlier this year, including this week, up to $458 million for SK Hynix in Indiana. In total, Commerce has completed more than $33 billion of the more than $36 billion in proposed stimulus financing.
“With this investment in Samsung, the U.S. is now officially the only country in the world where all five leading semiconductor manufacturers are located,” said Commerce Secretary Gina Raimondo.
