Samsung is planning to massively ramp up investment in the US, as the Korean giant sees huge interest following deals with the likes of Tesla and Apple.
Samsung's Increased Commitments With the US Are Set to Position It as The Second Largest Domestic Chipmaker, Besides TSMC
For those unaware, Samsung played a vital role in the recent US-South Korea trade deal, under which the firm will invest heavily in the US chip market. Interestingly, the company's Taylor facility has been under construction ever since the CHIPS Act grants started pouring in, but in the past few months, progress has been halted as the Korean giant has been facing sluggish momentum with its chip business. However, based on a report by Sedaily, it is claimed that Samsung is rapidly ramping up investments in the US, which could reach up to $50 billion.
Samsung's investments in the US dropped to $37 billion last year, as the company wasn't optimistic about chip production. However, with the recent efforts of the Trump administration to boost American chip manufacturing, the Korean giant is now expected to ramp up investments, in particular to develop cutting-edge 2nm production lines and a dedicated advanced packaging facility. More importantly, Samsung's increased collaboration with the US will also help the firm compete with TSMC in the region.
Samsung's sudden increase in interest in America is mainly due to the company's recent commitments to Tesla and Apple. The Korean giant is expected to develop Tesla's next-gen AI6 chips utilizing its 2nm process. More notably, Samsung secured a contract with Apple to produce image sensors in Texas. This has allowed the firm to develop relations with tech giants in the US, and their increased investments have also made them dodge the hefty chip tariffs.
The Korean giant is on track to be the second-largest chipmaker behind TSMC in America, allowing it to capitalize on the hype, reduce the operating losses of the foundry division, and give companies the option of dual-sourcing. The company's flagship facility in the US is reported to start production by October, after a wait of several years.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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