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U.S. Finalizes Up to $6.75 Billion in Semiconductor Awards for Samsung, Texas Instruments, and Amkor

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The U.S. Commerce Department announced finalized awards totaling up to $6.75 billion to Samsung Electronics, Texas Instruments, and Amkor Technology, supporting efforts to boost domestic semiconductor production and packaging capabilities. These awards are part of a broader $39 billion subsidy program aimed at strengthening U.S. semiconductor manufacturing.

Samsung Electronics will receive up to $4.745 billion—$1.7 billion less than the initial April estimate of $6.4 billion—reflecting adjusted investment plans. Samsung now plans to invest $37 billion, down from the originally stated $45 billion, in building two chip production facilities, a research center, and a packaging facility by 2030. The Commerce Department stated that the changes were made to align the award with revised market conditions and the company’s updated investment scope.

A Samsung spokesperson noted that the company’s “mid-to-long-term investment plan has been partially revised to optimize overall investment efficiency” without disclosing further details.

Texas Instruments is set to receive up to $1.61 billion, with $900 million allocated to its Texas facilities and $700 million for its operations in Utah. The company has committed over $18 billion through 2029 to construct two factories in Texas and one in Utah, collectively expected to create 2,000 manufacturing jobs.

Amkor Technology will receive up to $407 million to support its $2 billion advanced semiconductor packaging facility in Arizona, which will be the largest of its kind in the United States. The facility will focus on packaging and testing chips for applications such as autonomous vehicles, 5G/6G, and data centers. Apple has been named its first and largest customer, with chips sourced from a nearby Taiwanese Semiconductor Manufacturing Company (TSMC) plant.

Amkor CEO Giel Rutten highlighted the strategic importance of the Arizona plant, calling it a “critical cornerstone” in establishing a robust U.S. semiconductor supply chain.

This announcement follows Congress’s approval in August 2022 of a $39 billion subsidy program, alongside $75 billion in government lending authority, to bolster the semiconductor industry. The Commerce Department has now finalized over $33 billion of the $36 billion in proposed incentive funding.

Earlier this week, the Commerce Department also finalized $458 million for SK Hynix’s Indiana facility and previously confirmed up to $7.86 billion for Intel, down slightly from an initial $8.5 billion estimate due to separate Pentagon funding for Intel projects.

Commerce Secretary Gina Raimondo underscored the significance of these investments, noting that “the U.S. is now officially the only country on the planet that is home to all five leading-edge semiconductor manufacturers.”

 

U.S. Finalizes $406 Million Chips Subsidy for Taiwan’s GlobalWafers

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The U.S. Commerce Department announced on Tuesday that it has finalized a $406 million government grant to Taiwan’s GlobalWafers to boost silicon wafer production in the United States. This investment is part of the U.S. government’s broader efforts to strengthen the domestic semiconductor supply chain.

Expansion of U.S. Production

The grant will fund projects in Texas and Missouri, aimed at establishing the first high-volume U.S. production of 300-mm silicon wafers, a critical component for advanced semiconductors. Additionally, the funds will support the expansion of silicon-on-insulator wafers production. These wafers are essential for the manufacture of cutting-edge chips, aligning with the Biden administration’s initiative to enhance the U.S. semiconductor industry.

GlobalWafers plans to invest nearly $4 billion to build new wafer manufacturing facilities in both states. This expansion is expected to create 1,700 construction jobs and 880 manufacturing jobs. The company’s move comes at a time when the U.S. is looking to reduce its dependence on foreign-made chips and strengthen its domestic production capabilities.

Strategic Localization Amid Global Supply Chain Challenges

CEO Doris Hsu of GlobalWafers expressed the strategic importance of localizing production, especially given the current global semiconductor supply chain challenges. She highlighted that local supply in high-demand regions, like the U.S., will be prioritized, as it is more likely to be supported by local customers.

Hsu also acknowledged the potential uncertainties regarding the U.S. CHIPS Act with the incoming Trump administration, which will take office next month. However, she expressed confidence in the continuation of the initiative, noting that the CHIPS Act had its origins during Trump’s first term. While the company is legally protected by contracts, Hsu pointed out that tariffs and potential new policies could still affect the company’s operations and supply chain.

Global Wafer Production and U.S. Investment

GlobalWafers’ decision to invest in the U.S. aligns with its broader strategy to address the growing demand for semiconductors. In 2022, the company announced plans to build a $5 billion plant in Texas to produce 300-mm silicon wafers, a shift from its original plan to invest in Germany.

Currently, five major companies, including GlobalWafers, control over 80% of the global market for 300-mm silicon wafers, with the majority of production still concentrated in East Asia. The company is expanding its presence in the U.S. with a new plant in Sherman, Texas, to manufacture wafers for advanced, mature-node, and memory chips, as well as a new facility in St. Peters, Missouri, to produce wafers for defense and aerospace applications.

Urgency to Finalize CHIPS Act Awards

The U.S. Commerce Department is working swiftly to finalize grants under the CHIPS and Science Act, a semiconductor manufacturing and research subsidy program that was approved in 2022 with a budget of $52.7 billion. The department aims to complete these awards before Trump’s inauguration on January 20.

 

Trump Accuses Taiwan of Stealing U.S. Chip Industry; Experts Say Taiwan’s Growth is Organic

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Former President Donald Trump recently claimed that Taiwan had effectively stolen America’s semiconductor industry, asserting that the island democracy had taken “almost 100%” of the market from the U.S. Trump suggested that this loss was a grave error and that Taiwan should pay for American defense support.

However, industry experts dispute this assertion. Taiwan’s semiconductor success is attributed to its strategic vision and innovative business model, not theft. Morris Chang, the founder of Taiwan Semiconductor Manufacturing Company (TSMC), established the company in 1987 after a distinguished career in the U.S. semiconductor industry. Chang’s vision was revolutionary—creating a “pure-play foundry” model focused solely on manufacturing chips designed by other companies.

This approach transformed the global chip sector. Today, Taiwan produces over 90% of the world’s advanced semiconductors, according to the Semiconductor Industry Association. TSMC’s success is built on its ability to scale production, invest heavily in R&D, and maintain efficiency. The company’s recent opening of a global R&D center in Hsinchu further underscores its commitment to advancing chip technologies.

Experts highlight that Taiwan’s achievements are rooted in its effective contract manufacturing model, skilled engineers, and a supportive tech ecosystem. While Intel and Samsung are attempting to replicate TSMC’s success, Taiwan’s advantages remain challenging to duplicate.

In response to Trump’s remarks, Taiwanese Premier Cho Jung-tai emphasized that Taiwan remains committed to maintaining its R&D capabilities domestically. This stance underscores the strategic importance of Taiwan’s semiconductor industry amid growing geopolitical tensions, including the risk of Chinese aggression.

The ongoing U.S.-China rivalry and chip shortages during the pandemic have prompted the U.S. to seek greater domestic chip production through initiatives like the CHIPS and Science Act. As TSMC expands its operations with new factories in Arizona, it faces challenges integrating its operations into different cultural and regulatory environments.

Experts advise that fostering a cooperative relationship between Taiwan and the U.S. could benefit both sides, ensuring stability and progress in the global semiconductor industry.