Samsung is reportedly poised to invest an additional $7.2 billion into its U.S. chip manufacturing operations, specifically targeting an advanced chip packaging facility. This new investment comes ahead of the South Korea-USA summit scheduled for August 25, where the announcement is anticipated.
This latest financial commitment supplements a previously planned $37 billion investment in U.S. chip production. The move signals Samsung’s renewed determination to strengthen its position in the chip manufacturing sector, following recent challenges. The company aims to produce advanced 2nm and 4nm chips, with the goal of meeting demand from prominent clients such as Apple and Tesla. Furthermore, the investment is seen as a strategic measure to circumvent potential future tariffs.
Initially, Samsung had contemplated a $44 billion investment that included a chip packaging facility. However, due to subdued demand for its chips at the time, the packaging component was temporarily removed from their plans. Its reintroduction underscores a shift in market conditions and Samsung’s strategic priorities.
Samsung asserts that its comprehensive manufacturing solution—encompassing chip production, chip packaging, and memory chip manufacturing—provides a competitive advantage in the U.S. market. This integrated approach contrasts with competitors like TSMC, which focuses on chip manufacturing and packaging, and SK Hynix, which specializes in memory chips.
Construction of Samsung’s Taylor Fab 1 is nearing completion, with the building expected to be finished by the end of this year. Installation of the necessary chip manufacturing equipment is slated for next year.
