Samsung Secures $250M Grant for Taylor Semiconductor Facility

Samsung’s Austin facility in Texas has been a global hub for producing cutting-edge semiconductors for nearly 30 years. However, for the past few years, the company has also been building a Taylor facility in the state, with plans to begin production next year. To support this expansion, the Texas government has now granted $250 million from its Semiconductor Innovation Fund.

Samsung’s Taylor semiconductor project receives state support

In 2021, Samsung announced its plans to build a new semiconductor hub in Taylor, Texas, but it has not yet become operational. Due to slower demand for advanced nodes, the company had to postpone the mass production timeline several times — initially planned for 2024, then to 2025, and recently to 2026.

But now, it looks like Samsung will stick to the latest timeline thanks to a recent deal worth $16.5 billion with Tesla to produce chips at this facility. An earlier report said that the firm has already ordered the necessary equipment for the foundry line construction and has begun deploying personnel at the facility. It aims to complete cleanroom work within this year and set up equipment in 2026.

So far, Samsung has invested about $40 billion in Texas, helping the state lead in semiconductor manufacturing. Furthermore, it brings more business to local communities and creates thousands of jobs for Texans. Last year, Samsung’s Austin and Taylor facilities added a whopping $19.8 billion to the local economy.

Building on this momentum, Texas Governor Greg Abbott has now announced a $250 million Texas Semiconductor Innovation Fund (TSIF) grant to Samsung Austin Semiconductor, LLC for its semiconductor fabrication facility in Taylor.

Samsung is investing $4.73 billion into its Taylor facility to make advanced 2nm chips for AI, 5G, and high-performance computing. “This $4.73 billion investment by Samsung in their Taylor semiconductor fabrication facility will provide a more secure domestic supply of chips for critical U.S. industries and ensure the most advanced chips that will power next-generation technologies are Made in Texas,” said Governor Abbott.