Samsung to build new US chip fab at its Taylor campus this year

Samsung has made significant investments in the chipmaking business at its Taylor campus in Texas. It got off to a slow start because the demand just wasn't there, but things have now turned around.

The company confirmed during its earnings call today that in order to meet rising demand, it will begin construction on a new US chip fab at the Taylor campus before the end of this year.

This would be the second foundry fab at its Taylor, Texas campus. The company aims to meet the growing demand for advanced semiconductor manufacturing, particularly from US companies.

Samsung also highlighted that the current expansion pace for its advanced process capacity isn't in line with the growing demand, which is why it's having to speed up the expansion plans.

“We will gradually expand our 2-nanometer capacity and are preparing to break ground on our second Taylor fab by the end of this year, targeting mass production in 2030,” the company said.

Samsung already has significant orders from major US companies. Tesla has inked a $16.5 billion chipmaking contract while Broadcom's latest $200 billion deal with Samsung also includes the production of advanced chips.

As the AI buildout further strains the demand supply gap for foundry services, Samsung finds itself in a great position to fully capitalize on the market conditions.