The US CHIPS Act comes to an end with $6.75 billion in awards

According to statements from a spokesperson for the US Department of Commerce to the Reuters agency, “this benefit was modified to align it with market conditions and the scope of the investment that the company is making.”

For its part, the South Korean company admitted that its “medium and long-term investment plan has been partially revised to optimize overall investment efficiency,” but did not provide further details about the new agreement with the Department of Commerce.

Samsung’s initial plans involved an investment of around $45 billion to build two chip production facilities, a research center and a packaging plant. However, according to the Department of Commerce, the capital was reduced to 37,000 for projects that are scheduled to be completed by the end of the decade.

Texas Instruments, on the other hand, had drawn up an investment plan for 2029 of $18 billion for two new factories in Texas and Utah, of which it will also receive $900 and $700 million, respectively, once operations begin.

In the case of Amkor, the construction of a packaging plant is planned in Arizona, which would be one of the largest in the United States and would be responsible for testing and packaging semiconductors for autonomous vehicles, 5/6G and data centers.

“With this investment in Samsung, the United States is now officially the only country on the planet that is home to all five cutting-edge semiconductor manufacturers,” said Commerce Secretary Gina Raimondo, referring to companies such as TSMC, Samsung and Intel.

The end of the CHIPS Act

The CHIPS Act project was one of the most ambitious industrial policies of the Biden administration, representing a $39 billion subsidy program for the manufacturing of chips and related components in the United States to regain industry leadership against Asia.

Last month, Intel won a $7.86 billion award under the Act, after the California-based chipmaker won a separate $3 billion award from the Pentagon.

With these latest awards, the Commerce Department has already finalized the largest financings it offered earlier this year, including one of up to $458 million for SK Hynix and another in Indiana for more than $33 billion in incentives.

However, it is expected that in the face of Donald Trump’s new government, the CHIPS Act will be repealed, as the Republican has mentioned that it is a policy that benefits foreign companies over American ones.