The grant, from the 2022 Chips Act, signals a major boost for Samsung’s chipmaking operations in the United States.

Samsung Electronics is on track to receive more than US$6 billion in funding from the United States, aimed at helping the South Korean chipmaker expand its operations in the country. The grant is part of a broader initiative under the 2022 Chips and Science Act, designed to bolster U.S. semiconductor production and reduce dependence on foreign chipmakers.

The US federal funding, which is expected to be announced soon, would complement Samsung’s existing US investment, which includes a US$17 billion project in Taylor, Texas, near its current facility in Austin. While the exact location for this new investment has not been disclosed, sources familiar with the plans say it will represent a significant expansion of Samsung’s U.S. operations.

In addition to Samsung’s grant, Taiwan Semiconductor Manufacturing Company (TSMC), a major rival to Samsung, is also expected to receive more than US$5 billion in funding, marking a broader push by the U.S. government to attract leading semiconductor companies to produce chips on American soil. These funding decisions come under the auspices of the Chips and Science Act, which allocated US$39 billion in direct grants, as well as loans and loan guarantees amounting to US$75 billion, to incentivize semiconductor manufacturing in the U.S.

The funding for advanced chip projects is part of the U.S. government’s strategy to maintain its leadership in the rapidly growing sector, particularly in the wake of the AI boom, which relies heavily on cutting-edge semiconductor technology. The U.S. Commerce Department has been in talks with major semiconductor manufacturers, including those producing advanced chips that power artificial intelligence and other emerging technologies. Secretary of Commerce Gina Raimondo has indicated that about US$28 billion has been set aside for these advanced chip production projects.

Though the announcement of the Samsung grant is not yet final, and the details could still change, this potential funding marks a significant step in U.S. efforts to secure a critical part of the global semiconductor supply chain on its soil. Both Samsung and the U.S. Commerce Department have declined to comment on the specifics of the deal, but the grant represents a significant shift in the global semiconductor landscape, with the U.S. increasingly positioning itself as a critical hub for chip manufacturing.