The Samsung Austin Semiconductor factory, courtesy of Samsung
Samsung is accelerating progress at its long-delayed chip plant in Taylor, Texas, following its $16.5 billion USD deal with Tesla to produce the automaker’s next-generation Artificial Intelligence 6 (AI6) chips — reports SammyGuru.
The South Korean tech giant is reportedly preparing to invest roughly 4 trillion won (about $2.8 billion USD) in the Taylor fab by the end of next year. That figure is tied to producing an estimated 17,000 wafers per month at the plant, where Samsung plans to begin 2nm chip production in 2026.
Originally announced in 2021, the Taylor plant was expected to begin operations in 2024. However, repeated delays pushed its timeline back to 2025 and then to 2026, largely due to challenges in securing major clients.
The Tesla contract — Samsung’s largest single-chip deal to date — has now sparked a renewed push, giving Samsung the client commitment it needed to forge ahead with its latest U.S. semiconductor hub. Tesla CEO Elon Musk announced the $16.5 billion agreement with Samsung in July, saying at the time that the deal could eventually be worth significantly more.
Samsung has already ordered equipment for the foundry line and plans to deploy personnel in two waves, with the first group arriving this month and the second in November 2025. The staff will be tasked with installing equipment, optimizing processes, and beginning wafer testing. Industry insiders noted that while stabilizing 3nm production takes about 10 months, 2nm processes could require closer to 11 months.
Tesla currently relies on Samsung for its AI4 chips, which power the vehicles shipping today. The move to AI6 is expected to significantly boost performance for Tesla’s autonomous driving and neural network training efforts. Meanwhile, Samsung is also in talks with Nvidia, Apple, Qualcomm, and AMD to further expand its client base for the Taylor fab.
With its Tesla partnership in place, Samsung’s long-stalled U.S. chip hub finally appears set to enter high gear.
