US finalizes up to $6.35 billion in chips awards for Samsung Electronics, Texas Instruments

Reuters12-21
US finalizes up to $6.35 billion in chips awards for Samsung Electronics, Texas Instruments

By David Shepardson

WASHINGTON, Dec 20 (Reuters) - The U.S. Commerce Department said Friday it was finalizing an award of up to $4.745 billion to South Korea's Samsung Electronics 005930.KS and up to $1.61 billion for Texas Instruments to expand chips production.

The Samsung award is about $1.7 billion smaller than the preliminary award announced in April of up to $6.4 billion and reflects its revised smaller investment plans, the department said.

A Commerce spokesperson said Friday the department "changed this award to align with market conditions and the scope of the investment the company is making. Samsung feels that this award represents a strong commitment to their Texas and U.S. efforts and is a sustainable long-term plan for them."

In April, administration officials said Samsung planned to invest roughly $45 billion in building and expanding its Texas facilities through the end of the decade. On Friday, Commerce said Samsung plans to invest $37 billion in the coming years.

Samsung did not immediately comment.

Texas Instruments has pledged to investment more than $18 billion through 2029 in two new factories in Texas and one in Utah, which are expected to create 2,000 manufacturing jobs.

Congress in August 2022 approved a $39 billion subsidy program for U.S. semiconductor manufacturing and related components along with $75 billion in government lending authority.

Commerce has now finalized the largest awards it offered earlier this year including earlier this week finalizing up to $458 million for SK Hynix 000660.KS in Indiana.

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

(Reporting by David Shepardson; Editing by Chizu Nomiyama)

((David.Shepardson@thomsonreuters.com; 2028988324;))

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