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Samsung bets $7.2B in US chip packaging facility

A $7.2B investment by Samsung will expand US chip output, focusing on advanced packaging and integrating production for major customers.

byEmre Çıtak
August 12, 2025
in Industry

Samsung plans an additional $7.2 billion investment in its U.S. chip manufacturing operations, focusing on an advanced chip packaging facility, ahead of the South Korea-USA summit on August 25.

This new capital allocation supplements a previously announced $37 billion investment in chip manufacturing. This expanded investment follows earlier adjustments to Samsung’s U.S. strategy. The company initially earmarked $44 billion for U.S. chip production; however, a period of reduced demand led Samsung to withdraw plans for a chip packaging facility. The reintroduction of this specific investment indicates a shift in its strategic outlook and market conditions.

Samsung intends to produce 2-nanometer (2nm) and 4-nanometer (4nm) chips within these facilities. This production capability aims to address demand from new clients, including Apple and Tesla. The investment also aligns with efforts to mitigate the impact of potential tariffs. While not yet officially confirmed, the announcement is anticipated during the South Korea-USA summit scheduled for August 25.

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Samsung asserts that its comprehensive manufacturing approach provides a competitive advantage in the U.S. market. This approach integrates chip production, chip packaging, and memory chip manufacturing into a single solution. In contrast, competitors like TSMC focus on chip manufacturing and packaging, while SK Hynix specializes in memory chips. Furthermore, construction of Samsung’s Taylor Fab 1 facility is expected to conclude by the close of the current year, with equipment installation for chip manufacturing slated for the following year.


Featured image credit

Tags: Samsung

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