Samsung Resumes Texas Chip Plant, Powering Tesla's Next-Gen EVs
Samsung Electronics has restarted construction on its semiconductor plant in Taylor, Texas, marking a significant step in the revival of the US semiconductor industry. The project, initially halted in 2024 due to a global chip demand slowdown, is now poised to generate thousands of high-tech jobs and bolster the region's economy.
The renewed momentum at the Taylor fab is tied to a contract with Tesla for next-generation 2nm chips, providing demand certainty for the expansion. Samsung plans to produce these advanced chips using its SF2P process, powering future electric vehicles and AI systems. The project is an upgrade from Samsung's initial plan in 2021 to build an $18 billion, 5nm EUV facility in Austin, Texas.
The Taylor plant is part of Samsung's commitment to strengthening its US presence and fortifying the American semiconductor supply chain. The company has invested an additional $4 billion to resume the project, including $2.87 billion for critical manufacturing equipment. The project will also drive a major hiring push, with engineers being onboarded in two phases starting in September and continuing in November. Samsung's decision to resume the Taylor project follows increased investments from other companies like Taiwan Semiconductor Manufacturing Company (TSMC), which has announced plans to invest up to $165 billion in building manufacturing plants in Arizona.
The restart of the Taylor project underscores Samsung's commitment to the US semiconductor industry and its potential to drive long-term economic benefits. With a contract from Tesla and increased investments from other companies, the future of innovation in the United States semiconductor industry looks promising.
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