WASHINGTON — With 31 days to go until President-elect Donald Trump takes office, the Biden administration said it is granting Samsung Electronics up to $4.7 billion for domestic semiconductor fabrication. The award is through the CHIPS and Science Act President Biden signed in 2022 to bring semiconductor manufacturing back to the United States through tax incentives and $52.7 billion in subsidies.

What You Need To Know

  • The Biden administration said it is granting Samsung Electronics up to $4.745 billion for domestic semiconductor fabrication

  • The award is through the CHIPS and Science Act President Biden signed in 2022 to bring semiconductor manufacturing back to the United States through tax incentives and $52.7 billion in subsidies

  • Samsung has committed to investing at least $37 billion to bolster its facilities in Texas that develop and produce leading-edge chips in the U.S. 

  • Used in everything from cars and dishwashers to satellites and weapons systems, semiconductors were invented in the U.S., but less than 10% of the world’s chips are currently produced here

“With this investment in Samsung, the U.S. is now officially the only country on that planet that is home to all five leading-edge semiconductor manufacturers,” U.S. Secretary of Commerce Gina Raimondo said in a statement. 

Intel, Taiwan Semiconductor Manufacturing Company, Micron and Broadcom also make silicon chips in the United States. Used in everything from cars and dishwashers to satellites and weapons systems, semiconductors were invented in the U.S., but less than 10% of the world’s chips are currently produced here. 

“This is an extraordinary achievement, which will ensure we have a steady, domestic supply of the most advanced semiconductors that are essential to AI and national security, while also creating tens of thousands of good-paying jobs and transforming communities across the country,” Raimondo said.

With the new CHIPS investment, the company will create about 12,000 construction jobs and at least 3,500 manufacturing jobs by 2029, the U.S. Commerce Department said. In February, the Biden administration set a goal for the CHIPS program to produce 20% of the world’s leading-edge semiconductors domestically by 2030.

Samsung has committed to investing at least $37 billion to bolster its facilities in Austin and Taylor, Texas, that develop and produce leading-edge chips in the U.S.

Also on Friday, the Commerce Department announced up to $1.61 billion in funds to help Texas Instruments invest more than $18 billion through the 2020s to construct three new "state-of-the-art facilities, including two in Texas and one in Utah." TI also makes semiconductors.