By David Shepardson
WASHINGTON (Reuters) – The U.S. Commerce Department said on Friday it was finalizing an award of up to $4.745 billion to South Korea's Samsung Electronics ( KS 🙂 and up to $1.61 billion to Texas Instruments ( NASDAQ 🙂 to expand chip production .
Samsung's award is about $1.7 billion smaller than the original award announced in April of up to $6.4 billion and reflects revised investment plans, the department said.
A Commerce spokesperson said the department “changed this award to match market conditions and the scope of the company's investment. Samsung feels this award represents a strong commitment to their efforts in Texas and the US and is a long-term plan with them.”
In April, regulatory officials said Samsung planned to invest about $45 billion to build two chip manufacturing facilities, a research center and a packaging facility by 2030. On Friday, Commerce said that Samsung plans to invest 37 billion dollars and complete the projects by the end of the decade.
Samsung did not immediately respond but Samsung Electronics CEO Young Hyun Jun said in a statement released by Traders that the deal “represents another milestone as we continue to invest in and build a state-of-the-art semiconductor ecosystem in the US.”
Texas Instruments has pledged to invest more than $18 billion through 2029 in two new factories in Texas and one in Utah, which are expected to create 2,000 manufacturing jobs. The company earns $900 million from its Texas operations and $700 million.
Congress in August 2022 approved a $39 billion stimulus package for US semiconductor manufacturing and related sectors and $75 billion in federal borrowing authority.
Last month, Commerce ended the award up to $7.86 billion for Intel (NASDAQ: ) from the $8.5 billion announced in March after the California chipmaker won a $3 billion award from the Pentagon.
Commerce has now completed the largest awards it offered earlier this year including this week, completing up to $458 million for SK Hynix in Indiana. In total, Commerce completed more than $32 billion of the $36 billion in proposed stimulus funding.
With this investment in Samsung, the US is now officially the only country in the world that houses all five of the leading semiconductor manufacturers, said Commerce Secretary Gina Raimondo.