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Photo = Samsung Electronics |
[Alpha Biz= Reporter Kim Sangjin] The U.S. government has confirmed a subsidy of $4.745 billion (approximately 6.9 trillion KRW) for Samsung Electronics' semiconductor manufacturing facility in Texas. This amount is about 26% less than the $6.4 billion (approximately 9.2 trillion KRW) announced in April when both parties signed a preliminary agreement (PMT).
The U.S. Department of Commerce stated on Friday that the subsidy, in line with the CHIPS Act, will support Samsung's efforts to transform its current semiconductor plant in central Texas into a comprehensive ecosystem for advanced semiconductor development and production. Samsung plans to invest over $37 billion (approximately 53 trillion KRW) in this project.
The reduction in the subsidy is attributed to the decrease in Samsung's investment plans. When the PMT was signed, Samsung had initially planned to invest over $40 billion in its Texas facility, but the investment has since been reduced by $3 billion (7.5%).
The decision also reflects some of the fiscal conservatism from former President Donald Trump's administration, which had been critical of large-scale government subsidies. In a statement, U.S. Secretary of Commerce Gina Raimondo emphasized that this investment will make the U.S. the only country to host all five of the world's leading advanced semiconductor manufacturers.
Samsung Electronics intends to use the subsidy to bolster its semiconductor production capacity in the U.S., as well as expand its global supply chain for advanced semiconductor technologies.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
