Samsung Prepares Second Chip Factory in Taylor, Texas

Samsung has yet to begin full-scale operations at its first factory at the Taylor plant. However, the company has reportedly already started preparing for a second factory at the site. This is likely in response to the increasing demand for cutting-edge chips used in AI, cloud computing, and automotive technology.

Taylor City Council approves contract extension for Samsung Fab 2 project

According to a report from Korea JoongAng Daily, Samsung Taylor plant’s second factory (Fab 2) has entered the early stages of planning. The Taylor City Council recently approved an extension of the South Korean giant’s contract with HDR Engineering. The US firm will handle permitting and code compliance inspection services for the new factory. It will also conduct reviews for the fab design.

Once Samsung receives all necessary building permits, it could begin construction on Fab 2. The Korean firm has already invested heavily in the Taylor site, purchasing 1,268 acres of land. This could eventually allow it to accommodate up to 10 semiconductor factories. The first factory (Fab 1) will likely enter the mass production phase next year. It is gearing up to make advanced chips for clients such as Tesla, including the AI5 and AI6 models.

Reports suggest Samsung has inked deals with 121 customers for the Taylor campus. This includes major technology firms such as Google, AMD, and ByteDance. The Taylor campus will focus on making 2nm chips, the most advanced semiconductor technology to date.

Samsung reportedly expects 130% on-year growth in 2nm orders this year, thanks to high demand for HPC and AI chips. Hopefully, the company’s foundry unit will make a comeback with substantial profits, narrowing the gap with industry leader TSMC. “With big tech companies set to ramp up shipments of customized semiconductors from 2026, Samsung Foundry is expected to achieve meaningful top-line growth from 2027 related to chip production surges,” said an analyst at Hana Securities.