The US government has cut subsidies for Samsung Electronics’ semiconductor facilities in the US by about 26% as part of a larger subsidy reduction package. This move contrasts with its decision to grant SK Hynix up to $500 million in subsidies and government loans earlier.
Under the CHIPS Act, Samsung is set to receive $4.745 billion in subsidies, down from an initial agreement of $6.4 billion. The reduction is largely due to Samsung’s revised investment plans, which now total $37 billion, a 16% decrease from its original plan.
The US Department of Commerce cited “market conditions and the scope of the company’s investments” as the reason for the subsidy adjustment. Samsung attributed the change to optimizing overall investment efficiency in its mid-to-long-term plan. The subsidy cut affects Samsung’s semiconductor production facilities in Taylor, Texas, and Austin, with the reduced subsidies translating to a similar reduction of 26% on the original agreement.
Source: https://www.chosun.com/english/industry-en/2024/12/22/4KFC76LW5FDT5NW3WWA7WVC66M