Samsung is gearing up to produce critical AI memory components for AMD and Nvidia at its newly announced second chip factory in Taylor, Texas, marking a key expansion in the U.S. semiconductor supply chain.
- Samsung’s second Texas fab uses advanced 2nm process technology
- Facility will produce HBM base dies primarily for AMD and Nvidia
- Mass production planned for 2030 following construction starting in late 2026
What happened
Samsung announced plans to utilize its second semiconductor fabrication facility in Taylor, Texas, to manufacture base dies for high-bandwidth memory chips. These components serve as the foundation layers in stacked memory architectures that feed advanced AI processors designed by AMD and Nvidia. The plant is reported to have secured full order commitments, with AMD as the primary volume customer.
This plant will leverage Samsung’s cutting-edge 2-nanometre process technology and cover approximately 2.7 million square feet, significantly larger than their first Taylor fab. Construction is slated to begin in November 2026, with equipment installation planned for early 2029 and mass production expected by 2030.
Why it matters
This expansion strengthens the U.S. semiconductor supply chain, especially in the critical AI memory segment where demand has been outpacing supply. Samsung’s investment supports growing needs from key customers like AMD and Nvidia, both major players in AI hardware development. It also signals Samsung’s foundry business is on a path to profitability after years of losses.
The second Texas fab complements the first, which focused on automotive AI chips, notably Tesla’s AI5 and AI6 models backed by a $16.5 billion contract. Together, these investments represent Samsung’s strategic push to be a dominant supplier in next-generation semiconductor technologies while benefiting from government incentives like the CHIPS Act.
What to watch next
Industry watchers should monitor the progress of the new fab’s construction and the ramp-up of 2nm process capacity as Samsung aims to meet increasing AI memory demand. The timing of equipment installation and the start of mass production will be critical milestones in determining Samsung’s competitiveness against rivals like TSMC and SK Hynix.
Additionally, AMD’s AI chip business growth and Nvidia’s memory procurement strategies will influence the fab’s order book and production volume. Observing how Samsung manages supply chain challenges and scales this new facility will shed light on future U.S.-based semiconductor manufacturing capabilities.