Samsung Initiates Construction of Its Taylor Facility in US, Production Slated by Q2 2024

With an expenditure of over $17 billion, Samsung has begun building cleanroom infrastructure at its Taylor facility in the United States. In the second part of next year, Samsung intends to begin producing AI chips and HPC in large quantities.

With growing demand of semiconductor-based equipment, several companies are rapidly expanding their facilities. One such example is of TSMC, which has recently inaugurated their Arizona facility to meet the huge demand of Apple and other clientele. TSMC has invested well over $12 billion in the facility which was announced back in 2020.

Samsung’s plans follows efforts by the Biden administration to entice investments in American chip manufacturing by promising businesses billions in financial assistance to establish themselves in the nation. The initiatives seek to secure elements deemed essential to national security while thwarting China’s ambitions in the tech sector. 

With its 3nm process in particular, Samsung and TSMC are engaging in a technological arms race. By claiming to have lower costs and higher yield rates than its rival, Samsung is now trying to attract the interest of a number of customers, including Qualcomm and MediaTek. Samsung also intends to use the “Gate All Around” (GAA) technology in its next processes, making it the first to do so and undoubtedly obtaining a competitive advantage.

Companies are prioritising the location of their facilities outside of China and Taiwan in an effort to globalise the supply chain and avoid interruptions brought on by unanticipated events.