US finalizes up to $6,75 billion in chips awards for Samsung, Texas Instruments, Amkor

US finalizes up to $6,75 billion in chips awards for Samsung, Texas Instruments, Amkor

• US finalizes three chips awards worth up to $6.75 billion
• Samsung’s award cut by about $1.7 billion to $4.745 billion
• Commerce has finalized more than $33 billion out of $36 billion in awards announced

WASHINGTON, Dec 20 (Reuters) – The U.S. Commerce Department said on 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 chip production.

The department also finalized an award of up to $407 million to help fund Amkor Technology’s (AMKR.O), planned $2 billion advanced semiconductor packaging facility in Arizona, which is set to be the largest of its kind in the U.S.

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 the department

Changed this award to align with market conditions and the scope of the investment the company is making.

A Samsung spokesperson said its “mid-to-long-term investment plan has been partially revised to optimize overall investment efficiency” but declined to disclose details of its agreement with the Commerce Department.

n April, administration officials said Samsung planned to invest roughly $45 billion to build two chip production facilities, a research center and a packaging facility by 2030. On Friday, Commerce said Samsung plans to invest $37 billion and complete the projects by the end of the decade.

Texas Instruments has pledged to invest 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. The company is getting $900 million for its Texas operations and $700 million.

Amkor’s Arizona plant when fully operational will package and test millions of chips for autonomous vehicles, 5G/6G and data centers. Apple (AAPL.O), will be its first and largest customer with the chips produced at a nearby Taiwanese chipmaker TSMC (2330.TW), facility.

Amkor CEO Giel Rutten said the facility,

Will serve as a critical cornerstone in establishing a robust semiconductor manufacturing supply chain within the United States.

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.

Last month, Commerce finalized an award of up to $7.86 billion for Intel (INTC.O), down from $8.5 billion announced in March after the California-based chips maker won a separate $3 billion award from the Pentagon.

Commerce has now finalized the largest awards it offered earlier this year, including this week, finalizing up to $458 million for SK Hynix (000660.KS), in Indiana. In total, Commerce has finalized over $33 billion of the over $36 billion in proposed incentives funding.

Commerce Secretary Gina Raimondo, said :

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,

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US finalizes up to $6,75 billion in chips awards for Samsung, Texas Instruments, Amkor, source