A state fund supporting Texas’ semiconductor-technology economy has funneled $250 million to Samsung Electronics Co. Ltd. for research and development of advanced chips at its Taylor campus.
Gov. Greg Abbott, whose office oversees the Texas Semiconductor Innovation Fund, announced the grant on Wednesday in a meeting with Samsung officials at the Capitol.
“Texas is home to the future of technology and innovation,” Abbott said. “With approximately $40 billion invested in Texas, Samsung is helping to cement Texas’ position as the leading state for semiconductor manufacturing, bringing in more business investment to Texas communities and creating thousands of good-paying jobs for hardworking Texans.”
Abbott touted Samsung’s investment as providing “a more secure domestic supply of chips for critical U.S. industries and ensure the most advanced chips that will power next-generation technologies are made in Texas.”
It is all part of an effort to expand the state’s semiconductor research, manufacturing and supply chain industry, which is booming in Central Texas with Taylor at ground zero.
Samsung not only committed $17 billion in 2021 to constructing the first phases of the massive Taylor foundry but also plans to use federal and state grant dollars to build out a local semiconductor research facility.
More fabrication plants also are in the planning stages for later development at the Samsung Austin Semiconductor campus in Taylor to the tune of more than $40 billion.
Taylor Economic Development Corp. CEO Ben White said the state grant most likely matches the terms of the U.S. CHIPS Act grant from a division of the U.S. Department of Commerce.
Other companies and institutions in the area receiving Texas CHIPS Acts grants since its 2023 inception include the Hutto campus of Texas State Technical College, Austin Community College in Round Rock and KoMiCo Technology Inc., a Samsung supplier operating in Round Rock.
In March, Elon Musk’s Space Exploration Technologies Corp., better known as SpaceX, received a grant from the Texas Semiconductor Innovation Fund for $17.3 million to expand its semiconductor research and development center in Bastrop County.
A spokesperson for Samsung could not be reached for comment.
Samsung originally was in line for up to $6.4 billion in a federal grant to incentivize U.S. investment in Taylor and Austin. Last December, the Commerce Department announced the South Korean tech giant would receive more than $4.7 billion from the $37 billion fund created by the act that passed with strong bipartisan support in Congress.
“The state’s considerable support of the Samsung Austin Semiconductor facility in Taylor is a powerful testament to Texas’ leadership in semiconductor innovation and economic growth,” said state Rep. Caroline Harris Davila, R-Round Rock, in a prepared statement.
Her District 52 includes Taylor.
She added, “I’m proud to represent Taylor and neighboring communities across Central Texas, where this historic project is already supporting tens of thousands of jobs and billions in local economic activity. This newest commitment will further boost opportunities in Williamson County, strengthen America’s national security, advance AI innovation and secure a resilient supply of advanced microchips.”
The Samsung foundry was originally slated to be operational by the end of 2024, but a shift in demand for even smaller advanced semiconductors of 2-nanometers along with uncertainty over clients for the chips in a competitive market has delayed production until late 2026.
“This grant will ensure that our semiconductor manufacturing facility in Taylor delivers the most advanced technology for our global customers and continues to reinforce the chip supply chain in the U.S.,” said Young Hyun Jun, vice chairman and head of the Device Solutions Division at Samsung Electronics.
Earlier this summer, Austin-based Tesla CEO Elon Musk announced a $16.5 billion contract with Samsung to make a new generation of chips in Taylor for its vehicles and other technologies.
