An announcement of the deal came Monday from the Department of Commerce.

The funds will support development of several facilities in the state.

That's intended to boost the supply of chips for the aerospace, defense and auto industries.

Samsung says it will also help meet demand for future products including artificial intelligence.

As part of the deal, the South Korean giant will invest some $45 billion in Texas through the end of the decade.

It all marks the third largest agreement under the terms of the Chips and Science Act.

Rival chipmakers TSMC and Intel have already received support.

Washington hopes the moves will reduce U.S. reliance on semiconductor imports from China and Taiwan.

Lawmakers have been concerned they could be vulnerable amid rising tensions with Beijing.

The Biden administration also wants to see America once again play a major role in production.

Back in 1990, the country accounted for more than a third of global chip supplies, but by 2020 that figure had fallen to 12%.