Samsung plans more than $37 billion in Texas investment and second Taylor plant
Key Facts
Samsung Electronics' plan to expand its semiconductor operations in Texas includes investment of $37 billion or more, according to its investor disclosure, alongside plans to build a second plant in Taylor reported by the Associated Press. The planned amount covers construction and equipment costs for the company's project in the U.S. state. Samsung signed a direct funding agreement with the U.S. Department of Commerce for $4.745 billion in support under the CHIPS Act. The agreement allocates the funding to support the semiconductor project, which combines the company's planned investment with U.S. government assistance. Samsung describes the investment in its disclosure as "$37 billion or more," leaving the final cost and timetable subject to change. The company linked any adjustment to those two items to its business conditions and market circumstances.
On demand, Samsung attributed improved results in its chip foundry business, before incentive provisions, to demand for high-bandwidth memory base dies and strong orders from U.S. customers. The company said in its second-quarter 2026 earnings statement that the improvement was "driven by demand for high-bandwidth memory base dies and strong orders from customers in the United States." It announced a target of double-digit revenue growth for its foundry business, with demand rising from customers in the United States and China. The company's orders previously drew investor attention when it announced its agreement with Tesla, with its shares rising 6.8%, according to Reuters coverage published on July 28, 2025. The shares then reached their highest level since September of the previous year in response to the contract announcement.
The Taylor plant project dates back to Samsung's announcement on November 23, 2021, when it unveiled a $17 billion investment to build a semiconductor manufacturing facility. That announcement concerned construction of the plant that formed the basis of the company's expansion in the Texas city. The original plan targeted the second half of 2024 for the start of mass production, according to Samsung's investor disclosure. Subsequent expansion plans included a second plant in Taylor, according to the Associated Press, citing the company. The 2030 production target applies to this second plant, while the date in the original plan concerned the project Samsung announced in 2021.
The Taylor facility also received state government support, with the Texas governor's office announcing a $250 million grant to Samsung in September 2025. The grant came from the Texas Semiconductor Innovation Fund for Samsung Austin Semiconductor, according to a statement from the governor's office. Locally, the company announced $22.84 million in investment for 2026 as part of its expansion in Central Texas. The funds were allocated to community support and workforce development, according to a Samsung Semiconductor statement. Samsung Austin Semiconductor employs more than 4,500 people across its Austin and Taylor sites, placing workforce development programs within the scope of its existing presence at the two locations.
According to the Associated Press, Samsung plans to begin construction of the second Taylor plant before the end of 2026. It aims to start production there by 2030, under the announced timetable for this phase of expansion. The project's dates, along with its investment amount, remain subject to adjustment based on company and market conditions, under the terms of Samsung's disclosure. The next date on the company's investor calendar is its third-quarter 2026 earnings call, scheduled for October 29. Samsung set the call for 10:00 a.m. Korea time, according to its investor relations page.