Samsung Plans to Begin 2nm Production at Texas Fab in 2026: Report

Recent reports suggest that Samsung is gearing up for significant advancements in its semiconductor production capabilities. The company was expected to commence production on Samsung's 4nm node by the end of 2024, as per the report detailing Samsung's plans for a third Texas wafer fab with an estimated cost of US$24 billion.

However, there seems to be a potential shift in strategy, with ETnews indicating that a decision on transitioning to the more advanced 2nm manufacturing process could be on the horizon in the third quarter of 2024. This decision has led to a delay in chipmaking equipment orders as Samsung evaluates the feasibility and benefits of moving to the 2nm node.

In a move to bolster its presence in the semiconductor industry, Samsung had previously announced a US$17 billion investment plan to construct its first Taylor fab, which would mark the second Samsung fab in Texas. The initial budget for this project has reportedly increased to around US$20 billion since the announcement in November 2021.

One of the key factors influencing Samsung's decision-making process regarding the production node and timeline could be the rapid adoption of artificial intelligence (AI) technologies and the increasing demand for cutting-edge chips. Notably, Samsung's competitor TSMC has already begun producing leading-edge devices on the 3nm process for market leader Nvidia.

Furthermore, the competitive landscape in the semiconductor industry is intensifying, with Intel set to introduce its 20A and 18A processes (equivalent to 2nm and 1.8nm) in 2024. TSMC is also expected to roll out its 2nm process in the first half of 2025, while Rapidus has outlined plans to initiate chip production using a 2nm process licensed from IBM on a pilot line in April 2025, with mass production slated for 2027.