Samsung Electronics is preparing to develop a second semiconductor manufacturing plant in Taylor, Texas, to produce advanced chip components for US technology companies AMD and Nvidia.
The proposed facility will manufacture base dies for high-bandwidth memory (HBM) chips, a critical component in advanced artificial intelligence processors and high-performance computing systems. The development also represents another significant expansion of Samsung’s semiconductor manufacturing footprint in the United States. This is as demand for AI computing infrastructure continues to drive investment in advanced chip production.
Formal construction of the second Taylor, Texas facility by Samsung is expected to begin in November 2026. The plant has already secured orders for its entire production output, with AMD accounting for most of the committed volume, alongside Nvidia.
The planned manufacturing facility will cover approximately 2.7 million square feet, making it roughly 1.5 times larger than Samsung’s first facility in Taylor. It is expected to employ advanced 2-nanometre semiconductor manufacturing technology.
Samsung Taylor Plant to Manufacture Advanced HBM Chip Components
The second Taylor facility by Samsung is expected to focus on producing base dies used in high-bandwidth memory chips. These components play an important role in the architecture of advanced memory systems, particularly those used in AI accelerators and high-performance computing applications.
HBM technology enables large volumes of data to move between memory and processors at high speeds. This makes it particularly important for handling the intensive workloads associated with generative AI, machine learning and large-scale data center operations.
The base die also serves as the underlying logic layer in an HBM stack. It helps manage communication between the memory layers and the wider computing system. Its production also requires sophisticated semiconductor manufacturing capabilities.
Samsung’s decision to use its second Taylor facility for these components also reflects the growing importance of advanced memory technologies in the global semiconductor supply chain. It also positions the company to strengthen its relationship with major US chip designers seeking reliable access to advanced manufacturing capacity. Growing AI demand is also stimulating investment in energy infrastructure in the United States. This includes projects such as the South Mississippi Natural Gas Pipeline expected to support growing southeast US power demand.
Construction and Production Timeline for Second Samsung Semiconductor Plant in Texas
Equipment installation at the new Samsung manufacturing plant in Taylor, Texas is expected to begin in February 2029, with mass production targeted for 2030.
The development will expand Samsung’s existing semiconductor manufacturing presence in Taylor, Williamson County. The company’s first Taylor facility was part of its wider US semiconductor investment program and has a manufacturing contract with Tesla.
The second facility is expected to be considerably larger than the first, with approximately 2.7-million-square-foot footprint.
AI Chip Demand Drives Samsung’s US Semiconductor Expansion
The proposed second Taylor facility comes as semiconductor manufacturers increase investment in advanced fabrication capacity to meet growing demand from artificial intelligence, cloud computing and high-performance computing markets.
Companies such as AMD and Nvidia are expanding their AI hardware portfolios. This continues to increase the importance of reliable access to advanced semiconductor manufacturing and memory technologies.
For Samsung, the second semiconductor chip manufacturing plant in Texas provides an opportunity to strengthen its foundry business. It will also enable the company compete for a greater share of the advanced semiconductor manufacturing market. The company’s ability to manufacture components for major chip designers could also deepen its position in the supply chains supporting next-generation AI processors.
The expansion also adds to the strategic importance of Central Texas as a semiconductor manufacturing destination. Samsung’s existing operations and new investment in the Taylor area are contributing to the region’s growing technology manufacturing ecosystem. This is also supported by infrastructure, skilled labor and proximity to other technology companies.
Project Fact Sheet for Second Samsung Semiconductor Chip Manufacturing Plant in Taylor, Texas
Developer: Samsung Electronics
Location: Taylor, Williamson County, Texas
Facility size: 2.7 million square feet
Technology: Advanced 2-nanometre process technology
Primary production focus: Base dies for high-bandwidth memory (HBM) chips
Customers: AMD and Nvidia
Production commitments: Entire output secured
Largest customer allocation: AMD and Nvidia
Construction start date: November 2026
Expected equipment installation: February 2029
Target mass production: 2030
Project Team
Samsung Electronics – Project developer, facility owner and semiconductor manufacturer.
AMD – Customer for HBM base dies produced at the facility.
Nvidia – Customer for HBM base dies produced at the facility.
City of Taylor, Texas – Local government and regional economic development stakeholder.
Williamson County, Texas – Regional government and economic development stakeholder.
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