Samsung Electronics increases foundry investment in US and South Korea

Samsung Electronics is putting more money into its contract chipmaking business, with fresh investment aimed at facilities in the US and South Korea.

The reason is simple. Demand for chips that power artificial intelligence and high-performance computing (HPC) keeps rising, and Samsung wants enough factory capacity to meet it.

Texas is the centerpiece

The US side of the plan centers on a new foundry complex in Taylor, Texas. Samsung is investing $37 billion in the site.

The first fab at Taylor is slated to begin operations in late 2026. It will run a 2nm manufacturing process, one of the most advanced chipmaking technologies currently in use.

Fab 1 is targeting production of 20,000 wafers per month at 2nm by the second half of 2027.

Samsung has also placed additional orders for 2nm equipment at Taylor Fab 1. That new gear adds capacity for approximately 6,000 wafers per month.

A second fab is also on the way. Construction of Taylor Fab 2 is set to begin soon, with mass production expected by 2030.

As for who will buy the output, the Taylor fab is expected to produce AI chips for major clients, including Tesla and Meta.

The home front: Gwangju and a much bigger budget

Samsung is not only building abroad. In South Korea, the company plans two new semiconductor fabs in Gwangju.

Those fabs fall under a commitment of 400 trillion won, or roughly $290 billion.

The domestic expansion fits into a larger multi-year roadmap. Samsung has a 450 trillion won plan focused on boosting advanced-node production and keeping domestic supply aligned with its ambitions for global technological leadership.

Samsung’s broader spending plan exceeds 2,000 trillion won across various regions.

Why the foundry push matters now

The investment comes as Samsung’s foundry business shows revenue improvements. Those gains have been driven by sales of advanced-node and HPC chips.

Samsung’s corporate strategy remains focused on two goals at once: expanding domestic production capacity and improving profitability in the foundry segment.

Key milestones to watch: Taylor Fab 1 starting operations in late 2026, the climb toward 20,000 wafers per month by the second half of 2027, the groundbreaking for Fab 2, and progress on the two Gwangju fabs.