As artificial intelligence (AI) semiconductors emerge as a key agenda item for the upcoming South Korea-U.S. summit scheduled for Aug. 25, major domestic semiconductor companies such as Samsung Electronics and SK hynix are finalizing their plans for additional investments in the United States. In particular, Samsung Electronics is strongly considering expanding its local investment, including an additional 10 trillion won investment in packaging facilities that was excluded from the investment plan at the end of last year, as it has secured large-scale orders from big tech customers such as Tesla and Apple in the U.S.
According to industry sources on Aug. 11, Samsung Electronics had initially planned to invest $44 billion in its foundry (semiconductor contract manufacturing) plant in Taylor, Texas, but reduced it to $37 billion at the end of last year, adjusting the investment pace due to poor performance. The original investment plan included 4nm (nanometer, one billionth of a meter) and 2nm foundry plants, advanced packaging facilities, and advanced technology research and development (R&D) facilities, but at the time, the investment in advanced packaging facilities ($7 billion) was entirely omitted due to difficulties in securing customers.
However, as Samsung Electronics signed a 23 trillion won AI semiconductor supply contract with Tesla on July 28 and secured an Apple image sensor order just 10 days later, the need for an advanced packaging plant has grown. This is because to avoid tariff pressure from the U.S. government, the entire process from core chip manufacturing to post-processing must be carried out locally. The most significant advantage Samsung Electronics has emphasized in the process of securing big tech customers is its turnkey service that integrates memory, foundry, and packaging.
Investment is expected to increase not only in packaging but also in equipment and materials. As of the end of the first quarter of this year, the progress rate of the construction of Taylor Fab 1 was 91.8%, with completion scheduled for the end of October this year. The plan is to finish building the clean room by the end of this year and sequentially bring in semiconductor production equipment next year. A high-ranking official from a company supplying semiconductor materials to the Taylor plant said, “I understand that discussions are underway to expand supply volumes in preparation for increased local investment.”
Particularly in the case of Tesla’s order, there is a possibility of additional orders beyond the known scale, which could lead to additional investment in equipment and materials. Elon Musk, CEO of Tesla, previously stated regarding the contract with Samsung’s foundry, “The figure of $16.5 billion is just the minimum amount,” adding, “The actual production volume is likely to be several times more.” This suggests that the Tesla order could expand beyond simply supplying chips for vehicles to encompass AI semiconductors for supercomputers and the overall electronic equipment sector.
Samsung Electronics also stated during its performance announcement last month, “This year’s investment in the Taylor fab will proceed within the existing capex (capital expenditure) plan, but we expect an increase next year compared to this year.” A high-ranking industry official said, “Including additional investment in the packaging plant, (Samsung’s) investment in the Taylor plant will exceed $50 billion.”
In the case of SK hynix, after announcing last year that it would build a $3.87 billion (approximately 5.4 trillion won) advanced packaging plant in West Lafayette, Indiana, for the production of high-bandwidth memory (HBM) and other products, it is now on the verge of breaking ground. The plan is to mass-produce next-generation HBM and other products from the second half of 2028, but there is a possibility of expanding the investment scale by advancing the operation timing or increasing production items beyond packaging.
The expansion of U.S. semiconductor investments by Samsung Electronics and SK hynix is expected to play a role in supporting the South Korea-U.S. summit to be held in Washington, D.C. two weeks later. Yoon Sung-hyuk, Industrial Policy Secretary at the Office of the President, recently said, “Existing investment plans of our companies in the U.S. will be included in the investment amount at the time of the summit,” adding, “There are plans announced during the Joe Biden administration, like Samsung’s Taylor fab, but these plans will now proceed with chip orders from Tesla and will mainly be executed during the Donald Trump 2.0 administration,” virtually announcing an expansion of investment.
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