Samsung Gets $6.4 Billion Fund to Expand Texas Chip Manufacturing: Report

Samsung Gets $6.4 Billion Fund To Expand Texas Chip Manufacturing: Report



Samsung will receive $6.4 billion from the US government to expand its chip manufacturing in Texas.

A South Korean manufacturing conglomerate has gained support in its broader effort to expand chip manufacturing in the US.

The funding comes from the Chip and Science Act of 2022, which aims to boost chip production for the automotive, aerospace and defense industries. The aim is to strengthen national security, unnamed administration officials told Reuters, according to an April 15 report.

The grant will support two manufacturing facilities, including a research center and packaging equipment, and will allow Samsung to expand its semiconductor manufacturing facility in Austin, Texas, Commerce Secretary Gina Raimondo said.

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“[These grants] It will allow the US to once again lead the world, not only in semiconductor design, where we now lead, but also in manufacturing, advanced packaging, and research and development.

Samsung will reportedly invest another $45 billion to expand its Texas chip manufacturing facility by the end of 2030.

The news comes a month after chatGPT creator OpenAI reported plans to produce its own semiconductor chips for artificial intelligence (AI) applications. OpenAI may be getting funding from the United Arab Emirates government-backed group MGX.

Related: ‘China to start auction' — Will Hong Kong's Bitcoin ETFs fuel the halving rally?

Ahead of the Bitcoin (BTC) halving, chip shortages remain a pressing concern for miners.

Aside from climate-focused regulation, chip shortages remain the biggest concern for Bitcoin mining companies ahead of this week's Bitcoin halving.

Bitcoin mining company Riot Platform has listed 12 ongoing threats to Bitcoin mining profitability in its 2023 annual report. The lack of chip supply is one of the most serious issues that can affect mining in the long run. According to the report:

“The ongoing global supply chain crisis, coupled with increased demand for computer chips, has created a shortage of semiconductors.”

U.S. bitcoin miner CleanSpark cited “cryptocurrency hardware obsolescence” last year and may struggle to find new hardware in its 2023 10-K filing.

Bitcoin mining at home – time to start?. Source: Cointelegraph

RELATED: 10 Days Until Halving: Bitcoin Mining Profitability Won't Necessarily Fall

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