Expansion push targets surging AI, HPC customer demand

An aerial view of Samsung Electronics' new foundry factory in Taylor, Texas. [Getty Images]
An aerial view of Samsung Electronics' new foundry factory in Taylor, Texas. [Getty Images]

Samsung Electronics is pursuing new fab investments in the United States and South Korea to meet growing customer demand for advanced foundry processes, the company said.

Kang Seok-chae, executive vice president of Samsung Electronics' foundry division, said during the third-quarter earnings conference call Thursday that capacity expansion for leading-edge processes is not keeping pace with actual demand growth.

"To respond in a timely manner to the rapidly growing market and customer demand for 2-nanometer AI and HPC applications, we are reviewing capacity expansion plans, including the construction of additional fabs," Kang said.

The first foundry factory already built in Taylor, Texas has begun cleanroom operations and equipment installation. Specialist personnel from headquarters have been dispatched to the site to set up production lines.

Kang said Samsung would build out not only logic fab capacity but also advanced packaging capacity on schedule, adding that the company would strengthen its competitiveness in the AI era by developing an integrated ecosystem spanning ultra-fine processes through to packaging.

Kang added that discussions are underway with multiple customers on the most advanced 1.4-nanometer process, and that Samsung is working closely with some of them, including finalizing test chip development.


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