Stock Markets April 29, 2026 11:36 PM

Samsung Sees Opportunity to Expand 2nm Foundry Business as U.S. Fab Plans Advance

Company says talks with major tech clients are ongoing and it is evaluating a second Texas fab while first Taylor plant moves toward production

By Ajmal Hussain QCOM TSLA
Samsung Sees Opportunity to Expand 2nm Foundry Business as U.S. Fab Plans Advance
QCOM TSLA

Samsung Electronics said it expects to secure additional contracts to manufacture logic chips on its advanced 2 nanometer process, and that it is in discussions with large technology customers. The company is carrying out a preliminary review for a potential second fabrication plant in Taylor, Texas, aligned with customer interest, while its first Taylor fab is scheduled to begin operations this year and reach volume production in 2027. Last year Samsung booked a $16.5 billion order from Tesla to produce logic chips, and media reports in January indicated talks with Qualcomm and other customers on the 2nm node.

Key Points

  • Samsung expects to attract additional customers to manufacture logic chips on its advanced 2 nanometer process; this affects the semiconductor foundry sector and large technology customers that outsource chip production.
  • The firm is in preliminary review to build a second fabrication plant in Taylor, Texas, tied to customer demand - relevant to U.S. semiconductor manufacturing and industrial investment.
  • Samsung remains on track to start operations at its first Taylor fab this year and aims for volume production there in 2027; these timelines are material to supply planning across the chip supply chain.

Samsung Electronics said on Thursday it anticipates winning further foundry deals to produce logic chips using its advanced 2 nanometer process, and that it has been engaged in talks with large technology customers about potential contracts.

The company, which operates in the contract chip manufacturing market alongside rivals such as TSMC and Intel, also confirmed it is conducting a preliminary review into building a second fabrication plant in Taylor, in the U.S. state of Texas. Samsung said that review is being carried out in line with ongoing discussions with customers about possible orders.

Samsung reiterated that it remains on schedule to begin operations at its first Taylor fab this year and expects to commence volume production there in 2027. Those timing commitments align with the company's broader push to scale its advanced logic manufacturing capability.

Last year, Samsung secured a $16.5 billion order from Tesla to produce logic chips. In January, Korean media reported that Samsung had been in talks with Qualcomm and other customers regarding the 2 nanometer process.

The company's comments underscore its intent to attract additional customers for an advanced process node and to align U.S. manufacturing capacity with expected client demand. Samsung framed the potential second Taylor fab as a preliminary, customer-driven review rather than a finalized capital commitment.


Contextual notes - Information on potential customer discussions and the second-fab review was described by Samsung as ongoing and preliminary. The company has stated specific timing for its first Taylor facility - operations starting this year, with volume production targeted in 2027 - and previously announced a large order from Tesla.

The company did not provide further contract details or additional customer names beyond media reports that cited discussions with Qualcomm and other unnamed clients.

Risks

  • Customer talks remain ongoing and preliminary - potential contracts for 2nm production are not finalized, creating uncertainty for foundry revenue and capacity planning (impacts semiconductor and enterprise hardware markets).
  • The decision to pursue a second Taylor fab is under preliminary review and contingent on customer orders - the expansion is not guaranteed and could affect regional manufacturing investment if delayed or cancelled.
  • Timelines for the first Taylor facility moving from startup to volume production are stated by Samsung but may be subject to change; any schedule slippage would affect supply availability for customers planning product roadmaps.

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