Samsung Plans to Double Investment in Taylor

Next week, on April 15th, Samsung is set to make a significant announcement regarding its expansion plans in Taylor, Texas. The tech giant is expected to unveil its intention to construct a second fabrication plant in the city, along with substantial funding for additional research and development (R&D) facilities and packaging plants. This move will bring Samsung's total investment in Taylor to a staggering $44 billion, marking a major commitment to the region's technological advancement.

In a notable development last year, Samsung had announced a $17 billion investment in Taylor to establish its first fabrication plant in the area. Building on this foundation, the company's latest investment is reported to amount to $20 billion for the construction of a second fab, in addition to allocating $4 billion for a packaging plant and enhancing its R&D capabilities. This strategic decision underscores Samsung's confidence in Taylor as a key hub for its semiconductor operations.

The upcoming facility, referred to as Taylor 2, is expected to have a specific focus on High Bandwidth Memory (HBM) technology. According to industry estimates by TrendForce, DRAM producers are projected to dedicate approximately 250k wafer per month (wpm), equivalent to 14% of total capacity, to the production of HBM this year. Consequently, HBM revenues are forecasted to increase from 8.4% of DRAM industry revenues last year to 20.1% by the end of the current year, reflecting the growing demand for this advanced memory solution.

With the memory market showing signs of recovery, Samsung has expressed optimism about its financial performance. The company anticipates a remarkable 930% year-on-year increase in its Q1 operating profit, reaching an impressive $4.9 billion. This positive outlook is a testament to Samsung's strong position in the semiconductor industry and its ability to capitalize on market trends effectively.

Reports suggest that the Chips Act subsidies earmarked for Taylor could amount to around $6 billion, although official confirmation is pending. There are unconfirmed rumors circulating that the first silicon production run at Taylor 1 is scheduled for July. Additionally, the president of Samsung's foundry business, Choi Siyoung, has been quoted in the Seoul Economic Daily stating that mass production at the new facilities is slated to commence in 2025, signaling a significant milestone in Samsung's expansion strategy.