DALLAS – U.S. Senator John Cornyn (R-TX) released the following statement after the U.S. Department of Commerce and Samsung Electronics Co. announced that they have reached a non-binding preliminary memorandum of terms (PMT) to provide up to $6.4 billion in direct funding under the CHIPS and Science Act, which provides resources for the programs created in Sen. Cornyn’s CHIPS for America Act to restore semiconductor manufacturing back to American soil:

“By investing in leading-edge semiconductor manufacturing, we are helping secure this vulnerable supply chain, boosting our national security and global competitiveness, and creating new jobs for Texans,” said Sen. Cornyn. “The chipmaking capabilities these resources will enable at Samsung, including advanced packaging and research and development will help the U.S. reclaim its leadership role in the critically important semiconductor industry, and I look forward to seeing more Texas-led advancements in the years to come.”

Background:

Sen. Cornyn authored the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, now law, to restore semiconductor manufacturing back to American soil by increasing federal support to stimulate advanced chip manufacturing, enable cutting-edge research and development (R&D), secure the supply chain, create American jobs, and ensure long-term national security. The bill was included in the William M. (Mac) Thornberry National Defense Authorization Act (NDAA) for Fiscal Year 2021 and became law on January 1, 2021. Funding for the programs created in the CHIPS for America Act was signed into law as part of the CHIPS and Science Act in 2022 to spur growth in the domestic semiconductor industry.

The CHIPS and Science Act included $52 billion in financial assistance to build, expand, or modernize domestic facilities and equipment for semiconductor fabrication, assembly, testing, and advanced packaging; research and development; expanding the semiconductor workforce; and supporting the Department of Defense (DoD).

Under the CHIPS for America program, the U.S. Department of Commerce may offer applicants a PMT on a non-binding basis after satisfactory completion of the merit review of a full application. The PMT outlines key terms for a CHIPS incentives award, including the amount and form of the award.

In 2021, Samsung announced a $17 billion project to advance semiconductor manufacturing in Taylor, Texas. This proposed funding doubles their investment in the state, totaling more than $40 billion in the coming years to expand their current project, build a new semiconductor factory, and add an advanced packaging facility that will also focus on research and development.

In June 2023, Governor Abbott signed into law the Texas CHIPS Act, which works in conjunction with this federal legislation to maintain and expand Texas’ dominance in the semiconductor industry.