Samsung may receive a $6 billion grant for its chip factories from the US
The US government is putting in efforts to boost the local production of semiconductor chips. For this reason, the government is offering grants and tax concessions to chip manufacturers. It appears like Samsung is about to receive a big grant from the US government. Reportedly, Samsung intends to make cutting-edge semiconductor chips in the United States.
A recent report from Reuters claim that the South Korean tech giant Samsung is about to receive a $6 billion grant from the US government. With the help of this money, the company can easily expand its presence in the United States. Currently, the company is working on its Taylor chip plant in Texas. According to some reports, the cost of building the chip plant in Taylor was around $17 billion. However, it has now grown wot around $25 billion.
It has been previously reported that the US government has passed a CHIPS Act that will ease the construction of advanced semiconductor chip plants in the country. For this reason, the chip manufacturing companies like Samsung and Intel have been waiting for grants and tax evasions. On the other hand, the government is taking time for issuing the grants. Another chip manufacturing company, TSMC, is expected to receive $5 billion grant from the US.
Given the tension between the US and China, the US government want more and more chip plants in the country. This approach is hampered by lack of talent and increased price of construction that is a big challenge for chip companies. A consistent supply of semiconductor chips for anything from servers and game consoles to automobiles would be guaranteed by local production.
To put it simply, the US companies won’t be required to depend on foreign companies and countries for semiconductor chips. Besides this, the US government has banned US-based companies from supplying advanced semiconductor chips to Huawei and advanced chip-manufacturing equipment to Chinese firms.
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