Samsung is reportedly ready to increase its investments into the US following a major Tesla deal, and it will include setting up an advanced packaging facility in the region.
Samsung Expected to Ramp Up Investments In the US, Following The Recent Deal With Tesla
Samsung's foundry division has been slacking off in the past few years, particularly due to the company's inability to secure large customers, but the momentum is back again after the recent deal with Tesla. Now, according to a report by Hankyung, Samsung is ready to pour money into America's chip industry again by setting up an advanced packaging facility worth up to $7 billion. This announcement is expected to give South Korea leverage in securing a tariff deal with the US, and put Samsung right alongside TSMC.
It is claimed that Samsung's Chairman, Jay Y. Lee, is expected to visit the US soon to participate in the ongoing trade negotiations. With that, the Korean giant is anticipated to increase its investments in the US. With the Taylor facility announcement, Samsung had planned to invest $44 billion in the US, but after an economic slowdown, the figure was reduced by several billions. However, the breakthrough deal with Tesla has given Samsung the confidence to increase its presence in the US, and one of the ways to do it is by establishing a one-of-a-kind advanced chip packaging facility in the nation.
The US doesn't have any high-end packaging facilities yet, and the major ones, such as those from TSMC, are expected to be operational by the end of the decade. So for Samsung, setting up a similar fab puts them in a competitive position in the US, and more importantly, it allows them to secure orders from domestic customers as well, giving them an opportunity to open up a new frontier apart from the Taiwan giant.
Samsung isn't the only Korean firm that is expected to pour in billions into the US. The report claims that SK hynix plans also to set up an advanced DRAM facility for HBM production, catering to key customers like NVIDIA. These investments are a part of efforts from the South Korean delegation to secure a better deal with the US, and it is anticipated that the parties will soon come to an effective conclusion.
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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