Under the “Chip Law”, Samsung could receive over $6 billion in subsidies in the US.

As the first quarter draws to a close, the US Department of Commerce is on the brink of defining the subsidy amounts under the “Chip Act” for various firms engaged in chip-making projects across the nation. According to some sources, South Korean company Samsung Electronics could receive over $6 billion in support.

This figure has been quoted by Bloomberg. Samsung Electronics has already begun the construction of a new facility in Texas, initially conceived to launch 4-nanometer products as early as July. Despite the probable delay of production commencement to the following year, Samsung’s commitment to invest approximately $17 billion in constructing and equipping this Texas-based facility remains firm. Over the next two decades, Samsung aims to establish 11 chip-manufacturing facilities in Texas, simultaneously developing an existing complex in Austin.

The conjectured $6 billion subsidy, Bloomberg points out, will encompass not just the project in Taylor, Texas, but the specific allocation remains unclear. The source reports that a preliminary agreement has already been established between the Department of Commerce and Samsung Electronics. The “Chip Act,” enacted in 2022, earmarks about $39 billion towards the building of semiconductor manufacturing facilities in the US, with a major portion set aside for advanced lithography projects. Samsung’s establishment in Taylor falls squarely into this classification.

If Samsung secures the $6 billion, while Taiwan’s TSMC gains $5 billion for their Arizona-based facilities, coupled with the presupposed $10 billion for Intel, these subsidies will exhaust over half of the direct subsidy quantum established by the law. Out of $28 billion reserved for advanced lithography, the three aforementioned projects will consume $21 billion. However, the US government is willing to provide an additional $75 billion on a reimbursement basis, a concept Samsung has tacitly shown disinterest in. The quantum of subsidies for Intel is slated for decision in the ensuing week, with other companies likely to receive approval soon after according to sources.