TSMC Capacity Tight, Samsung Plans 2nd 2nm Fab in Texas
According to South Korean media, the global semiconductor market is facing unprecedented demand as TSMC's foundry capacity reaches critical limits, prompting major U.S. tech companies to explore alternative wafer production sources. In response, Samsung Electronics is actively preparing to construct a second semiconductor fabrication facility (Fab 2) at its sprawling Texas-based semiconductor campus in Taylor, Texas.
Reports indicate that Samsung's Fab 2 project has officially entered the regulatory review and preliminary preparation stage. Once the building permits are issued, construction on the main facility is expected to commence immediately.
The planned Fab 2 is projected to cover approximately 2.7 million square feet, matching the scale of the first facility (Fab 1), which is currently under construction. However, Samsung's long-term strategy extends far beyond these two fabs. The company has acquired a total of 1,268 acres in Taylor to create a dedicated semiconductor industrial hub, providing flexible space for up to ten advanced fabrication plants to support future capacity expansion.
Samsung's investment in Taylor dates back to November 2021, when the company selected the city as the site for its second U.S. semiconductor foundry. Construction officially began in 2022. Initially announced with an estimated investment of $17 billion, the project's total investment has since been significantly increased to $37 billion to accommodate expanded plans.
From a technical perspective, the Taylor campus fabs will focus on high-performance computing (HPC) and automotive semiconductor applications, employing Samsung's cutting-edge 2-nanometer (2nm) process technology. Market reports confirm that Samsung has already secured orders from 121 clients at the Taylor facility, with major potential contracts expected from top-tier tech companies such as Google, AMD, and ByteDance.
Fab 1 is currently in its final preparation phase, with mass production slated for 2027. This production milestone is part of a strategic $16.5 billion agreement with electric vehicle leader Tesla to manufacture the company's next-generation AI5 and AI6 chips. According to Taylor city officials in February 2026, Samsung has obtained a temporary permit covering approximately 88,000 square feet of operational space within Fab 1.
Under the agreement with the Taylor city government, Samsung is required to complete up to 6 million square feet of campus facilities, including manufacturing spaces, utilities, infrastructure, and supporting amenities.
Data from TrendForce reveals that Samsung's foundry revenue reached $3.4 billion in Q4 2025, a 6.7% increase from the previous quarter, boosting its global market share from 6.8% to 7.1%, second only to TSMC, which maintains a 70.4% market share. With expanded domestic production in South Korea and the development of its Taylor fabs, Samsung aims to strengthen its position in the fiercely competitive semiconductor market.
