Samsung secures $6.4 billion grant to expand Texas chip manufacturing: Report

The US government is set to grant Samsung a total of $6.4 billion for expanding its chip production facilities in Texas.

In a larger initiative to increase chip production in the United States, the South Korean manufacturing group obtained the grants.

The financing will originate from the 2022 Chips and Science Act, designed to increase chip manufacturing for sectors including automotive, aerospace, and defense. According to reports from Reuters published on April 15th, the objective is to strengthen national security. (Sources: unnamed administration officials)

Commerce Secretary Gina Raimondo announced that the grants will fund two Samsung facilities: a research center and a packaging plant, in addition to expanding their semiconductor production site in Austin, Texas.

“[These grants] will allow the U.S. to once again lead the world, not just in semiconductor design, which is where we do now lead, but also in manufacturing, advanced packaging, and research and development.”

According to reports, Samsung is planning to put in an additional $45 billion for the growth of its chip manufacturing site in Texas by the year 2030.

A month after reports emerged of OpenAI, the creators of ChatGPT, intending to manufacture their own semiconductor chips for their AI projects, news surfaces of potential funding from MGX, a UAE government-supported organization.

Chip shortage remains the most pressing concern for miners ahead of the Bitcoin (BTC) halving.

For Bitcoin miners, the approaching halving event is not the only concern. The scarcity of chips poses a significant risk at present as well.

In its 2023 annual report, Bitcoin mining company Riot Platforms identified 12 potential risks that may affect the profitability of Bitcoin mining for them. One of the significant challenges mentioned was the scarcity of chip supplies, which could negatively impact their mining activities in the long run.

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

In their annual report filed with the Securities and Exchange Commission last year, CleanSpark, a U.S.-based Bitcoin miner, warned of potential disruptions in the supply of cryptocurrency mining hardware and the challenges they might face in obtaining new equipment for their operations by 2023.

Read More

2024-04-15 13:08