The United States government will award Samsung $6.4 billion in grants to expand its semiconductor chip manufacturing operations in Texas.
In an overarching endeavor to enhance semiconductor manufacturing in the United States, the South Korean manufacturing conglomerate obtained the grants.
The 2022 Chips and Science Act, which seeks to increase semiconductor production for the automotive, aerospace, and defense sectors, will provide the necessary funding. Unidentified administration officials told Reuters on April 15 that the objective is to strengthen national security.
Commerce Secretary Gina Raimondo stated that the grants will support two production facilities, including a packaging facility and a research center, and enable Samsung to expand its semiconductor manufacturing facility 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.”
By the end of 2030, Samsung will have allocated an additional $45 billion toward expanding its semiconductor manufacturing facility in Texas.
According to reports, OpenAI, the developer of ChatGPT, intended to manufacture its semiconductor circuits for artificial intelligence (AI) applications one month before this development. OpenAI may receive funding from MGX, a state-backed organization based in the United Arab Emirates.
Ahead of the Bitcoin halving, the most urgent concern for miners continues to be the chip shortage.
In addition to the potential implementation of climate-related regulations, the primary concern for Bitcoin mining companies in the run-up to this week’s Bitcoin halving is the continued scarcity of chips.
In its 2023 annual report, Bitcoin mining company Riot Platforms detailed twelve ongoing threats to the Bitcoin mining industry’s profitability. The chip supply shortage was one of the most critical issues that had the potential to significantly affect the company’s mining operations in the long run. As stated in the report:
“The ongoing global supply chain crisis, coupled with increased demand for computer chips, has created a shortfall of semiconductors.”
CleanSpark, a Bitcoin miner based in the United States, stated in their 2023 10-K filing the possibility of “cryptocurrency hardware disruption” and potential difficulties acquiring new hardware.
