The subsidy is the latest wave of funding in the Biden administration’s ongoing efforts to bring advanced computer chip-making capacity back to the U.S.
South Korean President Yoon Suk Yeol and U.S. President Biden during a visit to a semiconductor factory at the Samsung Electronics Pyeongtaek Campus in Pyeongtaek, South Korea, May 20, 2022. The U.S. government announced Monday a $6.4 billion subsidy for South Korean tech giant Samsung to build advanced computer chip manufacturing facilities in the Austin area, the latest wave of government funding meant to bring more chip-making production to the United States.
The money comes as part of a deal that will see Samsung invest $40 billion of its own money to upgrade a chip factory that’s already under construction in Taylor, Tex., in addition to building a second factory by the end of the decade and adding a new research and development center.
The artificial intelligence boom, which demands the most advanced chips to train and run AI algorithms, has only added more urgency to calls from industry and national security leaders to expand U.S. chip-making capacity.Building the most advanced computer chips, which are many times smaller than a human red blood cell, is a devilishly difficult task. A single chip factory, known as a “fab,” can take a decade and $20 billion to build.
U.S. companies moved production overseas decades ago, seeking lower labor costs in an extremely competitive industry. But as Asian companies developed ever more advanced manufacturing techniques, the United States fell behind. TSMC executivesthat U.S. workers and engineers aren’t up to the task of constructing and running such a difficult manufacturing process.
The Samsung deal includes around $40 million for job training, and the government expects the project to create over 17,000 construction jobs and 4,500 manufacturing positions in the next five years, according to a press release from the Commerce Department.This senator wants an online privacy law. She’s slowed efforts for years.
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