On the 14th (local time), Bloomberg reported that the US government is expected to provide Samsung Electronics with more than $6 billion in semiconductor subsidies.
The media, citing an anonymous source, said that this payment decision supports Samsung Electronics’s expansion in the US and the previously announced construction of a factory in Texas.
If the report is accurate, Samsung Electronics will receive more money than the subsidy that its main rival, Taiwan’s TSMC, will receive. The semiconductor subsidy TSMC will receive is around $5 billion.
This subsidy is by the US government’s Semiconductor Science Act, and sources predict that subsidy payment announcements will continue.
Bloomberg reported, “The subsidy payment will be made along with a considerable additional investment by Samsung Electronics,” and “Samsung Electronics announced a project worth $17 billion in Taylor, Texas in 2021. It’s not yet certain where the additional investment will be made.” However, since the final decision has not been made, the details related to the subsidy payment can change.
It has been reported that Intel, a major competitor of Samsung and TSMC, is set to receive more than $10 billion in subsidies and loans. According to a source, the subsidy payment to Intel will be announced next week. However, Intel has faced some difficulties in subsidy negotiations as the US Department of Defense has rejected subsidies related to military semiconductor production.
Meanwhile, the US is focusing on building semiconductor production bases for major US companies to dominate the global semiconductor market. To achieve this, the Semiconductor Act plans to provide semiconductor companies with subsidies totaling $39 billion sequentially.
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