The U.S. Department of Commerce has signed a non-binding preliminary memorandum of terms to provide up to $6.4 billion in direct funding to Samsung under the CHIPS and Science Act. The proposed investment would support the creation of more than 20,000 jobs, Commerce said.

Samsung would contribute an additional $40 billion to the projects.

The investment, if finalized would lead to Samsung’s development of new manufacturing facilities and capabilities. The company would establish a new facility in Taylor, TX and would expand its existing Austin, TX facility.

In Taylor, Samsung plans to build a comprehensive advanced manufacturing ecosystem, ranging from advanced logic to advanced packaging to R&D. This ecosystem would include two logic foundry “fabs” focused on mass production of 4nm and 2nm process technologies. It would also include an R&D fab dedicated to development and research on technology that, according to USDA, is “generations ahead of nodes currently in production.” In addition, an advanced packaging facility would produce 3D high-bandwidth memory and 2.5D packaging. The semiconductors would support computing, AI and other applications.

In Austin, Samsung plans to expand an existing facility to support the production of leading fully depleted silicon-on-insulator (FD-SOI) process technologies. This proposed investment also includes commitments to collaborate with the U.S. Department of Defense.

The CHIPS and Science Act also recently announced an award for wireless research.

“We’re not just expanding production facilities; we’re strengthening the local semiconductor ecosystem and positioning the U.S. as a global semiconductor manufacturing destination,” Kye Hyun Kyung, president and CEO of the Samsung Electronics Device Solutions (DS) Division,” said in a prepared statement.

“To meet the expected surge in demand from U.S. customers, for future products like AI chips, our fabs will be equipped for cutting-edge process technologies and help advance the security of the U.S. semiconductor supply chain.”

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