The U.S. Dept. of Commerce is prepared to provide Samsung Electronics with $6.4 billion in direct funding to support construction of two chip plants and expansion of another facility in Texas. Officials signed a nonbinding preliminary memorandum of terms with the company, they announced April 15.
The funding is to support more than $40 billion that Samsung is investing in the construction of a pair of leading-edge semiconductor fabrication plants, or fabs, plus research and chip packaging facilities in Taylor, Texas, and in the expansion of an existing fab in Austin, said the Commerce Dept. In addition to the direct funding, Samsung indicated it plans to claim an investment tax credit covering up to 25% of certain capital costs.