Samsung plans to expand its semiconductor chip factory in Taylor, Texas, USA. The South Korean firm recently grabbed a deal to supply advanced AI processing chips for a fabless semiconductor chip firm, and this chip plant expansion could be the result of the contract. The company wants to expand its chip production capacity.
According to a report from Korea JoongAng Daily, Samsung will add one more building to its semiconductor chip plant in Taylor, with a floor size of around 2.7 million square feet. The construction has already begun, and Samsung has hired a local engineering firm to roll out the construction review and inspection processes. The name of the new building is currently “Samsung Fabrication Plant 2,” as per the document filed with Taylor City's website. According to the document, “The City entered a development agreement with Samsung that requires the City to designate resources and create expedited processes for review, approval and inspection services related to site development and building construction activities.”
The building will be in the southwest part of the city, and it is a part of the company's Taylor chip plant that broke ground in 2022 with an initial investment target of $17 billion. However, the estimates have now risen to $25 billion, and that is due to the rising cost of construction and the addition of a new building. While the company hasn't revealed the exact plan for the new building, some expect it to be a place to store raw materials or a part of the chip production line.
Last year, Samsung filed an application to receive tax breaks from the government for 11 semiconductor chip plants in Texas, USA. The company pledged an investment of close to $200 billion over the next 20 years. The company plans to become the largest semiconductor chip firm by 2030 and overtake TSMC as the world's biggest contract chip foundry.