Joe Biden Celebrates Massive $40 Billion Texas Victory

Texas poised for semiconductor innovation with Samsung's ambitious plans

by Zain ul Abedin
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Joe Biden Celebrates Massive $40 Billion Texas Victory
© Anna Moneymaker/Getty Images

President Joe Biden has revealed a groundbreaking deal with Samsung, a South Korean tech powerhouse, to construct new semiconductor chip plants in Texas. This strategic agreement marks a significant milestone in bolstering domestic chip production and research, vital for sustaining America's technological prowess.

The accord, backed by up to $6.4 billion in direct funding from the 2022 CHIPS and Science Act, underscores Biden's commitment to reviving U.S. leadership in semiconductor manufacturing. Emphasizing the critical role of chips in modern technology, Biden remarked, "This deal is a testament to our efforts to fortify America's chip supply chain and safeguard the interests of consumers, businesses, and our military." The preliminary agreement between Samsung and the Department of Commerce is poised to trigger a staggering $40 billion influx into Texas, solidifying the state's position as a premier semiconductor hub.

With an estimated creation of 21,500 jobs, the collaboration aims to harness $40 million in CHIPS funding to empower local workforce development initiatives.

Samsung's Semiconductor Expansion

Samsung's ambitious cluster in central Texas will encompass two cutting-edge chip factories in Taylor, slated to commence production of four- and two-nanometer chips by 2026 and 2027, respectively.

Additionally, the project will include state-of-the-art facilities dedicated to research and development, along with packaging operations. Furthermore, the funding will fuel the expansion of Samsung's existing semiconductor facility in Austin, amplifying its manufacturing capabilities.

Commerce Secretary Gina Raimondo hailed the proposed project as a transformative leap for Texas, positioning the state at the forefront of semiconductor innovation. "This initiative propels Texas into an unparalleled semiconductor ecosystem, aligning with our target to produce 20 percent of the world's leading-edge chips domestically by 2030," remarked Raimondo during a press briefing.

The CHIPS Act, earmarking approximately $53 billion for government subsidies, underscores the administration's commitment to revitalizing domestic chip manufacturing. Biden's recent announcement follows a similar landmark agreement with Intel, signaling a concerted effort to reclaim America's position in semiconductor production.

"This endeavor not only revitalizes American manufacturing but also signifies an investment in our nation's workforce," Biden emphasized during a visit to Chandler, Arizona. The initiative bolsters economic resilience and underscores a broader commitment to empowering American industries and communities.

Joe Biden
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