Samsung Electronics will break ground within this year on its second foundry fab (manufacturing plant) in Taylor, Texas, and begin mass production in 2030. As global big tech companies such as Tesla expand demand for customized artificial intelligence (AI) semiconductors, the company is preemptively moving to increase production capacity.

On the 30th, during its second-quarter (April–June) earnings conference call, Samsung Electronics stated, “To respond to customer demand in a timely manner, preparations are under way to start construction of the second Taylor fab within the year.” This capacity expansion is part of the previously announced investment plan of USD 37 billion (about KRW 53 trillion) in the United States. The first Taylor plant, construction of which began in 2022, will commence mass production this year. In response to Taiwan’s TSMC, the world’s No. 1 foundry, which recently announced plans to build four additional fabs in the United States, Samsung Electronics is effectively ramping up its own foundry expansion.

There had been assessments that the start of construction for the second Taylor fab was far off due to insufficient foundry orders, but it is interpreted that the company chose rapid expansion as yields have recently improved and orders surged. Samsung Electronics said, “The utilization rate of advanced processes at 8nm (nanometer; 1nm is one-billionth of a meter) and below is at its maximum level, and 2nm order volume is expected to more than double year-on-year,” projecting that a turnaround to profitability in the foundry business will be possible in the near term.

Supported by growing AI semiconductor demand, Samsung Electronics announced that it posted record quarterly results in the second quarter, with sales of KRW 171.5 trillion and operating profit of KRW 89.5 trillion. Operating profit in the semiconductor (DS) division alone reached KRW 89.2 trillion.

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