Samsung Electronics Co. will receive an additional ₩346 billion ($250 million) in subsidies from Texas, marking the state’s second major financial commitment to the South Korean chipmaker’s expansion plans.
Governor Greg Abbott announced the grant during a meeting with Samsung executives at the Texas Capitol on Tuesday, including Jeon Young-hyun, head of the company’s Device Solutions division. The funding comes from the Texas Semiconductor Innovation Fund, a state program established in 2023 with ₩966 billion ($698.3 million) in appropriations.
The latest subsidy adds to ₩374 billion ($270 million) Texas provided Samsung in 2021, bringing total state support to approximately ₩720 billion ($520 million) for the Taylor semiconductor facility. Samsung has committed over ₩6.5 trillion ($4.73 billion) in capital investment for the project.
Abbott cited Samsung’s broader ₩55 trillion ($40 billion) investment commitment across Texas as justification for the additional funding. The governor said the investment would create thousands of high-paying jobs and help establish Texas as a semiconductor manufacturing hub.
The subsidy calculation weighs several factors including capital investment scale, job creation potential, project scope and regional economic impact, according to state guidelines. Samsung’s Taylor facility is scheduled to begin producing advanced 2-nanometer logic chips by late 2026, targeting applications in 5G networks, artificial intelligence and high-performance computing.
The financial assistance underscores intensifying competition among U.S. states to attract semiconductor manufacturing as supply chain concerns drive domestic production initiatives. Samsung’s Taylor plant represents the largest foreign direct investment in Texas history, though the company’s timeline has faced scrutiny over potential delays.
Construction crews have already begun foundation work for a second fabrication facility at the Taylor complex, suggesting Samsung’s confidence in expanding operations despite broader industry challenges.
