The US government announced on Monday it is awarding $6.4 billion to South Korean technology giant Samsung to expand a semiconductor plant in Texas.
The subsidy is part of Washington's broader effort to bring cutting-edge semiconductor production back to the United States amid concerns the world's largest economy is falling behind in the race to develop the chips that power artificial intelligence systems.
Samsung plans to manufacturer two-nanometre chips at the plant in Taylor, Texas. Such semiconductor technology is currently found exclusively in Asia, chiefly in Taiwan by market leader TSMC.
In view of the geopolitical tensions surrounding Taiwan, there is concern in the West about the supply of high-tech chips for smartphones and other devices.
US President Joe Biden signed into law the CHIPS Act in August 2022. It provides up to $39 billion in state support to encourage manufacturers to build plants in the US. Intel has secured $8.5 billion and TSMC was recently awarded $6.6 billion.
Samsung's $6.4 billion will go towards expanding its Texas site, which has been under construction since 2022.