Samsung plans Texas chip production for AMD and Nvidia

Samsung Electronics is preparing its new foundry in Taylor, Texas, to produce base dies for High-Bandwidth Memory (HBM) chips for AMD and Nvidia, according to reports. The facility is reportedly fully booked, with AMD described as its largest customer. Samsung has not officially confirmed the contracts.

The planned facility spans approximately 2.7 million square feet and will use 2-nanometer process technology for advanced AI hardware. Construction is reportedly expected to begin in November 2026, with equipment installation planned by February 2029. Mass production is considered unlikely before 2030, leaving a substantial wait before the project generates revenue.

Samsung has increased capital spending by more than 60% as it seeks to compete with SK Hynix, Micron and TSMC. Heavy investment and the extended production timeline could put pressure on profit margins and cash flow. Weaker-than-expected future demand for AI chips would add to the risks facing investors.