Samsung to Invest $7B More for Advanced Packaging Plant in U.S.

According to reports, Samsung Electronics is reportedly ramping up its U.S. semiconductor investments, planning to inject an additional $7 billion into a new advanced chip packaging plant—a strategic move closely following its recent $16.5 billion chip manufacturing deal, widely believed to be with Tesla.

According to The Korea Economic Daily, Samsung Chairman Lee Jae-yong is expected to visit the U.S. soon to engage in ongoing trade discussions, where the company may officially announce this new funding. Insiders suggest this could serve as a strong negotiation card for Korea in upcoming U.S.-Korea tariff agreements.

Back in 2021, Samsung committed $17 billion to build a 5nm wafer fabrication plant in Taylor, Texas. However, rising inflation, labor shortages, and material costs have delayed progress and inflated the project budget. Despite these hurdles, Samsung's recent high-value contract has renewed momentum for its U.S. operations.

In April, The Wall Street Journal reported Samsung was eyeing an expanded footprint in the U.S.—including a second advanced fab, an advanced packaging plant, and an R&D hub—pushing total investment plans to around $44 billion. That figure has since been scaled back due to market slowdowns and reduced client demand.

Now, with the Tesla deal confirmed by Elon Musk, Samsung is expected to accelerate mass production at its Texas fab and move forward with building a cutting-edge packaging facility, which will play a crucial role in final-stage semiconductor processing.

Notably, the U.S. currently lacks any operational high-end packaging plants, and Taiwan's TSMC isn't expected to start advanced packaging production in America until at least 2029. Samsung's earlier move could give it a first-mover advantage in the U.S. chip market and position it as a stronger competitor to TSMC in both foundry and packaging sectors.

The report also highlights that Samsung isn't the only Korean tech giant increasing its U.S. footprint. SK Hynix is planning a state-of-the-art DRAM plant focused on HBM (High Bandwidth Memory) to meet growing demand from key players like NVIDIA. These large-scale investments are seen as part of Korea's broader effort to strengthen its economic ties with the U.S. through strategic tech cooperation.