South Korea Prepares Funds of IDR 112.5 Trillion for Chip Production

On the other hand, the United States (US) government under Joe Biden will provide grant funds of up to USD 6.4 billion or around IDR 103.5 trillion to Samsung.

According to the US Department of Commerce, this move was made to expand chip production in Texas, as part of a broader effort to increase US chip manufacturing.

“Funding from the Chips and Science Act of 2022 will support two chip production facilities, a research center, and a packaging facility in Taylor, Texas,” the agency said, as quoted from ReutersWednesday (17/4/2024).

This will also allow Samsung to expand its semiconductor facilities in Austin, Texas.

Trade Minister Gina Raimondo added that this initiative could also increase chip production for the aerospace, defense and automotive industries and strengthen national security.

“(This investment) will enable the US to once again lead the world, not only in semiconductor design, which we now lead, but also in manufacturing, advanced packaging, and research and development,” Raimondo said.

Samsung Electronics Co-CEO, Kyung Kye Hyun, said to meet the expected surge in demand from US customers, future products such as AI chips, will be equipped with advanced process technology.

“In the process it will also help provide security to the US semiconductor supply chain,” Kyung Kye Hyun outlined.