Samsung to expand its Taylor chip factory after security AI deals

Samsung is looking to expand its new semiconductor factory in Taylor, Texas. According to the Korean media, the company plans to add another building to the under-construction site. The new building will have a floor size of around 2.7 million square feet (over 250,000 square meters or 61 acres). The firm is making this move after securing “a series of AI chip deals,” a report from Korea JoongAng Daily says.

Samsung to add a new building to its Taylor chip factory

The Korean company is one of the leading semiconductor foundries in the world. It is second only to TSMC. In November 2021, the firm announced plans to construct a new chip factory in Taylor, about 25 miles away from its existing plant in Austin, Texas, which has been operational since 1996. It has committed an investment of $17 billion for this factory where it will manufacture advanced semiconductors.

In July 2022, the Korean media reported that Samsung is looking to expand the area of the site by 14 percent, adding about 177 acres of land to the investment zone. While it’s unclear whether it received approval for this expansion from the local government, a new report says the company will construct one more factory building within the site, which should be operational next year.

The report adds that the city of Taylor has already appointed a local engineering company to review and inspect the development of the new factory, tentatively named “Samsung Fabrication Plant 2.” The city previously agreed to designate resources and expedite the review, approval, and inspection of Samsung’s construction works at the site so the factories can be operational as early as possible.

This planned expansion, coupled with rising material costs, would reportedly add $8 billion more to Samsung’s investment amount at the site. The total initial investment would rise to $25 billion. It has pledged to invest a whopping $192 billion in the state of Texas over the next 20 years. This plan involves the construction of 11 more chip plants in the state. The company has already applied for tax breaks and other incentives from the government.

Samsung may be cashing in on the AI revolution

Artificial Intelligence or AI may have been around for years but the field is seeing an unprecedented interest lately. The arrival of ChatGPT late last year has led to a whole new market for generative AI. All tech companies—big and small—are rushing to launch new AI products or enhance existing products with AI.

Samsung appears to be cashing in on this revolution. While it declined to comment on the report about the expansion plans of its Taylor semiconductor factory, the new report says the company has landed several AI chip deals. It remains to be seen whether this helps the Korean behemoth get closer to TSMC in the foundry market.