Samsung is moving toward a second chip factory at its Taylor, Texas semiconductor cluster, extending a US manufacturing project that has already grown from a $17 billion announcement into a $37 billion investment.
Recent Taylor City Council documents show the city unanimously approved an amendment extending HDR Engineering’s contract for development permit review and code compliance inspection services tied to Samsung’s planned “Fab 2” project. HDR’s scope includes design review, building permit support, permit issuance and construction code inspections.
Fab 2 is planned at about 2.7 million square feet, matching the size of Fab 1 now under construction. The second building would rise within a much larger Taylor campus built on 1,268 acres, enough land to accommodate up to 10 fabs.
The campus is now being positioned to capture AI, high-performance computing and automotive demand as customers look for capacity beyond Taiwan.
Samsung chose Taylor in November 2021 for its second US semiconductor foundry and began construction in 2022, turning the site into one of the largest chip manufacturing bets tied to the CHIPS and Science Act.
What began as a $17 billion investment was later enlarged to $37 billion, including a $4.75 billion US government subsidy. Under Samsung’s agreement with the city, the company must complete 6 million square feet of campus facilities, including manufacturing, utilities, infrastructure and support space, with another 1 million square feet due by 2028. Fab 2 materially advances that commitment.
The Taylor campus is meant to produce high-performance computing and automotive chips using Samsung’s 2-nanometer process. Digitimes reported that Samsung has already secured 121 customers for the site, with potential large orders from Google, AMD, and ByteDance. Samsung also projects more than 130% year-on-year growth in 2-nanometer orders this year, driven by HPC and AI demand.
Meanwhile, the first Taylor fab is preparing to begin mass production next year under Samsung’s $16.5 billion contract to manufacture Tesla’s AI5 and AI6 chips. Elon Musk previously stated AI5 mass production is expected around mid-2027.
Taylor is about a 40-minute drive from Tesla’s Giga Texas factory, strengthening the case for local supply coordination as Tesla deploys AI chips across vehicles and the Optimus robot.
The Taylor expansion also matters because Samsung Foundry’s financial position appears to be improving. After multiple years of losses, the business is expected to return to profitability in the fourth quarter of this year. Kiwoon Securities projects operating profit of 163 billion won, or about $109 million, for the period.
TrendForce data show foundry revenue in Q4 2025 rose 6.7% quarter over quarter to $3.4 billion, while market share increased to 7.1% from 6.8%. That still leaves Samsung far behind TSMC’s 70.4% share.
Information for this story was found via Korea JoongAng Daily and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
