Samsung's Taylor Fab 1 initiates follow-up equipment investment, sprinting towards 2nm mass production.
BlockBeats news, October 23 - According to a report by South Korean media on October 23, Samsung Electronics has initiated follow-up equipment investment in its Fab 1 in Taylor, Texas, USA, completing the final phase of pre-mass production layout. This fab is Samsung's first mass production foundry line in the United States, targeting a 2nm capacity of 20,000 wafers per month by the second half of next year. Samsung has recently ordered equipment to first meet a capacity demand of about 6,000 wafers per month, and the equipment will be shipped in succession.
Construction of Fab 1 began in 2022, with Samsung's cumulative investment reaching approximately $37 billion. The company plans to begin operations by the end of 2026 and start mass production of EUV 2nm chips from 2027. Samsung's 2nm yield has improved from about 60% at the beginning of the year to about 80%, reaching a mass-production-capable level.
On the orders front, the fab had already secured full 2nm orders before production began, with customers including Tesla's AI5 and AI6 chips, Broadcom communication chips, and Arm smart device chips; Samsung signed a long-term supply contract worth approximately $16.5 billion with Tesla in July 2025, running through the end of 2033.
Expansion has not stopped there. Samsung plans to start construction of Taylor Fab 2 in early November, at about 1.5 times the scale of Fab 1, targeting mass production of 2nm chips by 2030. Samsung's overall investment in central Texas exceeds $37 billion, and the U.S. CHIPS and Science Act has approved up to $4.745 billion in direct subsidies. The competitive landscape remains to be tested.
TrendForce data shows that in the second quarter of this year, TSMC's global foundry revenue share was 72.5%, while Samsung's was 5.9%. The ramp-up of capacity at the Taylor fab and yield stability will determine whether Samsung can convert its order momentum into a recovery in market share.
