Samsung Could Announce Its $44 Billion US Chip Investment Soon

Samsung has pumped a huge amount of money into its US chipmaking facility. Apart from its already existing facility, Samsung has announced a $17 billion project in 2021 for a semiconductor plant in Texas. The company is said to kick off mass production of chips later in 2024.

The US government seems to be focusing on the local chipmaking industry. The company is also giving other firms subsidies worth billions of dollars in return for setting up new facilities in the US. Samsung has also managed to secure some of these subsidies and has increased its total investment to over $44 billion.

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Samsung Boosts Its Investments In US Chipmaking Business

Samsung has already pumped in over $20 billion to develop chips in the US. Recent reports have hinted that it’s now boosting that investment to $44 billion. Samsung will reportedly build an additional semiconductor plant, alongside a chip packaging plant, and a chip R&D space in Texas.

Samsung is said to be receiving a $6 billion grant from the US government under the CHIPS ACT to develop enhanced chip facilities in the US. However, Samsung isn’t the only company to receive funding under this act. Intel received around $20 billion, while TSMC managed to raise $11.6 billion. And now, Samsung is getting $6 billion as well as loan awards on top of the funding.

Samsung is now said to officially confirm this $44 billion investment soon. The company will be announcing Commerce Secretary Gina Raimondo. An official announcement will kick off the diligence period during which the final terms of this agreement will be made between Samsung and the Commerce Department. The funds will later be released as the project crosses production milestones.

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US Trade Commission Asks Samsung To Stop Unfair Practices

The US Fair Trade Commission has asked Samsung to put a halt on unfair business practices in the US. The antitrust regulator said that Samsung shouldn’t demand retailers to offer it retail prices for its products. The company has been doing it for over six years before it faced a probe for the agency.

It was reported that Samsung asked its authorized retailers to provide the company with the retail prices of the products. The company continued doing so from January 2017 to September 2023 before a probe was ordered against it.

The company managed to get the prices of 15,389 products from 159 agents in the US by 2020. These products included washing machines and refrigerators. Now, Samsung won’t be able to demand the retailers to offer them retail prices, because it’s a trade secret. The company was using the retail price to evaluate the performance of its agents.