Queues forming at TSMC have triggered Samsung’s rapid expansion in Texas, where a second fab is moving through approvals, backed by billions in investment and federal subsidies.
Samsung Electronics is reportedly planning a second semiconductor fabrication plant in Taylor, Texas, US, as demand for foundry services intensifies amid capacity constraints at rival TSMC.
According to the Korea JoongAng Daily, the proposed facility, known as Fab 2, has entered the early stages of regulatory review and planning, following the Taylor City Council’s approval to extend its contract with HDR Engineering, Inc.
The firm will oversee design reviews, permitting processes, and compliance with building regulations, paving the way for construction once permits are secured.
Fab 2 is expected to span around 2.7 million square feet, mirroring the scale of Fab 1, which is already under construction. Samsung has acquired 1268 acres (513.14 hectares) in Taylor to establish a semiconductor cluster capable of housing up to 10 advanced fabs, signalling long-term expansion ambitions.
The company first selected Taylor in 2021, breaking ground the following year. Initial investment of US$17 billion has since grown to US$37 billion, supported by US$4.75 billion in federal subsidies under the CHIPS and Science Act.
The Taylor campus will specialise in advanced chips for high-performance computing and automotive applications, utilising Samsung’s 2nm process technology.
According to TrendForce, Samsung has secured orders from 121 customers, with major firms such as Google, AMD, and ByteDance expected to place large-scale contracts.
Fab 1 is scheduled to begin mass production in 2027, aligning with a US$16.5 billion agreement to produce Tesla’s next-generation AI5 and AI6 chips. Early operational preparations are already underway, with temporary permits covering parts of Fab 1.
Samsung has committed to completing 6 million square feet of facility space at the site. Industry data shows its foundry revenue rose 6.7% in the final quarter of 2025 to US$3.4 billion, lifting global market share to 7.1%.
With Fab 2 and its advanced process technology, Samsung aims to consolidate its position as the world’s second-largest foundry in a highly competitive sector.
