Samsung in line to secure $6bn in US government grants

Samsung intends to provide further details on the project in Taylor, Texas, alongside US commerce secretary Gina Raimondo, according to Bloomberg.

The South Korean company has locked in more than $6.0bn of government grants, however the timing and details of the announcement were still said to be in flux ahead of the announcement, Bloomberg sources said.

The broader programme also reflects an effort by the Biden administration to counter the technological rise of China, which has been ramping up its own domestic semiconductor industry.

The 2022 Chips and Science Act, which set aside $39.0bn in grants plus $75.0bn in loans and guarantees, has resulted in more than $200.0bn in private semiconductor investments, with Intel snatching nearly $20.0bn in grants and loans, and Taiwan Semiconductor Manufacturing, the primary chipmaker for Nvidia and Apple, nabbing a further $11.6bn.

Samsung's announcement will kick off about a 30-day due diligence period, during which Samsung and the Commerce Department will hammer out the final terms of the agreement.

As of 0935 BST, Samsung's US-listed shares were down 1.21% at $1,514.00 each.

Reporting by Iain Gilbert at Sharecast.com