Samsung Electronics is about to make a historic leap in its semiconductor strategy in the United States. The South Korean company, which already plays a central role in the recent trade agreement between Washington and Seoul, plans to increase its total investment in the country to over $50 billion, driven by strategic contracts with Tesla and Apple and the upcoming launch of its plant in Taylor, Texas, by the end of October.
According to a report from the South Korean media Sedaily, this figure represents a significant increase from the $37 billion invested in 2024, when the company scaled back its commitments due to declining global chip demand. This strategic shift is now motivated by renewed support from the U.S. government under the Trump administration, aimed at attracting advanced semiconductor manufacturing and reducing reliance on Asia, as part of the CHIPS and Science Act.
A strategic move for leadership in 2nm and advanced packaging
This expansion focuses on two main areas: developing 2-nanometer production lines and creating a plant dedicated to advanced semiconductor packaging. These investments aim to enhance Samsung’s competitiveness against TSMC, its main rival, and offer American tech companies a solid local manufacturing alternative.
The Taylor plant, which has been under construction since subsidies from the CHIPS Act started to be released, will be crucial. After delays due to market cooling, it is set to begin operations by late October 2025. This complex will not only host cutting-edge production but will also benefit from existing strategic contracts with key clients.
Tesla and Apple as growth catalysts
Contracts with Tesla and Apple have been pivotal in helping Samsung regain its investment momentum. Tesla, in particular, will manufacture its future AI chips, the AI6, using Samsung’s 2nm process, optimized for autonomous driving applications and real-time analysis.
Meanwhile, Apple has entrusted Samsung with manufacturing image sensors in Texas, strengthening a relationship that has mostly focused on memories and displays until now. This contract not only diversifies Samsung’s U.S. business but also helps bypass higher tariffs on components imported from Asia.
Direct competition with TSMC on U.S. soil
These large-scale operations position Samsung as the second-largest chip manufacturer in the U.S., just behind TSMC. The strategy aims to reduce operational losses in Samsung’s foundry division while offering American companies the option of dual-sourcing—diversifying critical component manufacturing among multiple suppliers—to mitigate risks.
Additionally, this move aligns with Washington’s strategic goal of strengthening the local semiconductor supply chain, especially amid geopolitical tensions with China and the rising demand for advanced chips for AI, automotive, and mobile devices.
A broader impact beyond business
The investment will have economic, labor, and technological implications. Expanded facilities and new production lines are expected to create thousands of skilled jobs in Texas, boosting the local engineering and advanced manufacturing ecosystem. Furthermore, closer collaboration between chip designers and manufacturers will shorten development cycles and accelerate the market introduction of new products.
With the Taylor plant set to commence in October and a client portfolio that includes two of the world’s most influential tech companies, Samsung solidifies its position as a key player in the global race for next-generation semiconductor leadership.
Frequently Asked Questions (FAQ)
Why is Samsung increasing its investment in the U.S. now?
The boost is driven by strategic contracts with Tesla and Apple, incentives from the CHIPS Act, and U.S. policies aimed at strengthening local chip production to reduce dependence on Asia.How important is the Taylor plant to Samsung?
The Taylor plant will be the center of 2nm and advanced packaging chip production in the U.S. and is expected to start operations by late October 2025.How does Samsung compete with TSMC in the U.S. market?
Samsung is now the second-largest manufacturer in the U.S., offering advanced production capabilities and contracts with key clients that enable direct competition with TSMC.What benefits will this investment bring to the U.S.?
It will generate thousands of skilled jobs, strengthen the local semiconductor supply chain, and enhance the innovation capacity of the American tech industry.