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After lagging in the AI chips segment over the past couple of years, Samsung is considering investing billions of dollars more in the USA for advanced chip manufacturing processes. Ahead of the South Korea-USA summit scheduled for August 25, Samsung is reportedly finalizing plans to invest more money in its local chip plants in the USA.
According to a report from SEDaily, Samsung is considering investing KRW 10 trillion ($7.2 billion) in the USA for advanced chip packaging. The company's original plan was to invest $44 billion in the country for chip manufacturing and packaging. However, due to the lack of clients at that time, the South Korean firm slashed its investment plans to $37 billion, dropping the entire chip packaging unit.
Now, though, as the company recently acquired clients like Apple (for camera sensors) and Tesla ($16.5 billion AI chip fabrication order), there is an urgent need to invest further. It plans to make 2nm and 4nm chips locally in the USA. Moreover, this move also seems to be a tactic to avoid additional tariffs from the Trump administration on its products.
Samsung claims its turnkey service, which integrates foundry, memory, and packaging, gives it an advantage over rivals who can't offer these services simultaneously. In comparison, TSMC can only offering chip manufacturing and packaging, while SK Hynix can only offer memory solutions.
At the end of the first quarter of this year, the construction at the company's Taylor Fab 1 plant was 91.8% complete, and the rest of the construction is scheduled to end in October. Samsung plans to complete the construction of the cleanroom, one of the most important parts of any chip fabrication plant, before the end of this year. Chip fabrication equipment will likely be installed next year.
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