Samsung has received $6.4 billion from the US government to expand chip production in Texas

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South Korean manufacturing giant Samsung has received $6.4 billion in support from the US government to expand its chip manufacturing facilities in Texas. Funding from the Chips and Science Act of 2022 is aimed at boosting chip production for the automotive, aerospace and defense industries, as well as strengthening national security, Reuters reported on April 15, 2010.

“[The grants] It allows the United States to lead the world, not just domestically. [semiconductor design]We are leading now, however, in manufacturing, advanced packaging and research and development,” he said.

In addition to the government aid, Samsung plans to invest another $45 billion to expand its Texas chip manufacturing facility by the end of 2030. The move comes at a time when a global chip shortage is affecting many industries, including the fastest growing. Artificial Intelligence (AI) sector.

OpenAI, the creator of popular AI chatbot ChatGPT, is reportedly planning to manufacture its own semiconductor chips for its AI applications. The company may be getting funding from the UAE government-backed group MGX to support this venture, reflecting the growing demand for specialty chips in the AI ​​industry.

The chip shortage has become a concern for the Bitcoin mining industry, especially with the upcoming Bitcoin halving. In its 2023 annual report, Bitcoin mining company Riot Platforms listed 12 ongoing threats to Bitcoin mining profitability, with chip supply shortages among the top ones. According to the report, the increasing demand for chips in the global supply chain has created shortages in semiconductors.

Similarly, US bitcoin miner CleanSpark cited “cryptocurrency hardware obsolescence” and that they may struggle to find new hardware in a 2023 10-K filing. The lack of chips can affect the profitability and growth of Bitcoin mining operations, as miners rely on specialized hardware to maintain their competitive edge.

As the government and private companies like Samsung work to address chip shortages by increasing domestic production and making significant investments, the bitcoin mining industry will have to navigate the challenges of a limited supply of semiconductors. The upcoming Bitcoin halving, which is expected to happen this week, could further increase the pressure on mining companies to use the necessary hardware to remain profitable in an increasingly competitive environment.

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