Many media reports refer to the 'Samsung Electronics Tyler factory,' but in most cases, they actually mean the new semiconductor factory being built in 'Taylor,' not 'Tyler.' In Texas, there are two different cities named 'Tyler' and 'Taylor,' and the area where Samsung has decided to make a large investment is the city of Taylor, located about 50 km northeast of Austin.

Samsung Electronics Factory in Taylor, Texas - Austin - 1

The construction of the Taylor factory can be seen as an extension of Samsung's ongoing efforts. Every new production facility that Samsung builds will serve as a stepping stone for technology development that will open up 'experiences of tomorrow' and bring changes to people's daily lives.

I am confident that the Taylor fab will serve as a link to a hopeful and promising future, continuing the history that Samsung has built in central Texas. This investment, which will bring new jobs and valuable educational opportunities to the city of Taylor, is the largest in Samsung's history in the U.S. and will contribute to the development of the local community while establishing a resilient supply chain for Logic Chips.

The Samsung semiconductor factory under construction in Taylor, Texas, is a large-scale investment project taking place in Taylor.

It is being built in the small city of Taylor, located about 50 km northeast of Austin, and is expected to feature advanced semiconductor (foundry) production lines.

Main Investment Background

  1. Expansion of semiconductor production in the U.S.: As the U.S. moves to strengthen domestic semiconductor manufacturing, several companies, including Samsung, are increasing local facilities.
  2. Synergy with the Austin factory: Since Samsung already operates a semiconductor factory in the Austin area, it is advantageous to connect workforce, partners, and logistics infrastructure.
  3. Support from local government: The state of Texas and the city of Taylor have provided various support, including tax incentives, which helped Samsung make the decision for this large-scale investment.

The investment amount is reported to be around $17 billion (over 20 trillion won), and after the factory is completed, it is expected to create thousands of jobs in engineering and technical positions. The completion date is anticipated around 2024-2025, with a primary goal of producing advanced processes (below 5nm).

In summary, Samsung's new semiconductor factory in Taylor, Texas, is expected to enhance semiconductor supply capabilities in the U.S. market by linking with existing semiconductor operations in the Austin area, while also positively impacting local job creation and economic revitalization.

Latest News

Samsung's foundry division attempted to attract large clients like AMD and NVIDIA to the Taylor factory, but reports indicate that they have not achieved success, leading to plans to operate with minimal staff until the end of the year. Consequently, partners who were dispatched to assist with equipment setup are gradually withdrawing due to prolonged uncertainty. A Samsung official, who requested anonymity, stated, "Employees dispatched from Korea to Taylor have been conducting simulations for about two years without installing equipment, so returning to Korea seems natural."

The Taylor factory, which began construction in 2022, is one of the key bases for the 'System Semiconductor Vision 2030' announced by Vice Chairman Lee Jae-Yong in 2019. This is Samsung's first large-scale investment project in the U.S. in over 20 years since the Texas Austin factory was established in 1998, and the company plans to invest a total of $45 billion (about 62 trillion won) in the U.S. semiconductor sector by 2030.

However, another Samsung official mentioned, "The Taylor factory is already under construction and is set to receive subsidies from the U.S. government's CHIPS Act, but there are no orders, so the production capacity remains sufficient with just the Korean factory." Ultimately, if sufficient foundry orders are not secured after the factory is completed, there is a significant possibility that the Taylor factory will face operational difficulties.