South Korea-based technology company Samsung is planning an additional $7.2 billion investment for its chip manufacturing operations in the US. This investment decision, which covers advanced semiconductor manufacturing and chip packaging, indicates that the company is reevaluating strategic steps it had previously suspended.
Samsung Decides to Increase US Investments
Samsung previously announced a $44 billion budget for its total chip manufacturing and packaging investment in the US. However, due to a lack of customers, this figure was reduced to $37 billion, and chip packaging investment was not included in the plan.
Due to recent developments, the company is reversing this decision. It is reported that the investment is being revisited, particularly due to camera sensor orders from Apple and Tesla’s $16.5 billion demand for artificial intelligence chip production.
This development comes ahead of the South Korea-US summit scheduled for August 25th. It is noteworthy that Samsung’s decision comes at a time when political pressure to increase production in the US is increasing and tariffs on Chinese products are once again on the agenda. The company is believed to be aiming to avoid potential tariffs by increasing production in the US.
Samsung’s chip manufacturing operation integrates not only manufacturing but also processes such as memory and packaging. This distinguishes the company from other major players in the industry. For example, TSMC offers only chip manufacturing and packaging services, while SK Hynix operates solely in memory production. Samsung, on the other hand, implements a vertical integration model by managing all these processes under one roof.
Progress is nearly complete at the company’s Taylor Fab 1 factory in Taylor, Texas. As of the first quarter of 2025, 91.8% of construction was completed. The remaining construction is expected to be completed in October. Cleanroom areas are also planned to be ready by the end of the year. The production equipment is expected to be installed in 2026.
With this new investment, Samsung is expected to increase its production capacity in the US, allowing it to directly serve the local market and strengthen its international competitiveness.
