Samsung is having trouble obtaining a tax subsidy for its US chip facility

As part of boosting the semiconductor industry in the US, Joe Biden, the President of the United States, signed the CHIPS and Science Act in 2022. As part of this act, the government is bound to offer grants of $52.7 billion to companies that are interested in building foundries in the US. Such an offer attracted many companies, including Samsung. The South Korean tech giant Samsung is beginning the construction of its new chip plant in Taylor, Texas, USA. The estimated cost of the plant is $17 billion and the company is currently having a difficult time with things.

A recent report from Korea JoongAng Daily suggests that the company is unable to secure grants that were meant to be provided in the form of tax exemptions. The publication cites a source that indicates that the US government assured Samsung that they would be given big financial support. However, things were quite disappointing. The tax benefits were unsatisfactory for Samsung during the negotiations. On the other hand, the cost of the plant continues to increase.

Perhaps Samsung is unable to secure the grant given the immense competition. The source indicates that around 400 companies, including Micron, Intel, and TSMC have shown interest in the subsidy. Some rumors indicate that the US government is biased and is favoring Intel, given the fact that Intel is a local brand and provides chips to US defense agencies. Samsung is currently “lobbying politicians for a more equitable allocation of funds that does not favor Intel,” according to Silicon Angle.