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Samsung is planning to significantly boost its investment in the U.S., driven by deals with companies like Tesla and Apple.
Samsung’s Increased Commitments With the U.S. Are Set to Position It as the Second Largest Domestic Chipmaker, Besides TSMC
For those unaware, Samsung played a crucial role in the recent U.S.-South Korea trade deal, under which the firm will invest heavily in the U.S. chip market. The company’s Taylor facility has been under construction since CHIPS Act grants began, but progress has slowed as Samsung faced challenges with its chip business. However, according to a report by Sedaily, Samsung is now rapidly ramping up investments in the U.S., which could reach up to $50 billion.
Samsung’s investment in the U.S. dropped to $37 billion last year due to lack of optimism about chip production. However, with efforts from the Trump administration to boost American chip manufacturing, Samsung is now expected to significantly increase investments, particularly for developing cutting-edge 2nm production lines and a dedicated advanced packaging facility. This collaboration will help Samsung compete with TSMC in the region.
Samsung’s sudden increase in interest in America is mainly due to its recent commitments to Tesla and Apple. The Korean giant is expected to develop Tesla’s next-gen AI6 chips using its 2nm process. Additionally, Samsung secured a contract with Apple to produce image sensors in Texas. This has enabled the firm to build strong relationships with tech giants in the U.S., and their increased investments have helped them avoid hefty chip tariffs.
The company is on track to be the second-largest chipmaker in America, behind TSMC, allowing it to capitalize on the market hype, reduce operating losses of its foundry division, and offer dual-sourcing options. Samsung’s flagship U.S. facility is expected to start production by October after several years of construction.
📚 Reading Comprehension Quiz
Why is Samsung increasing its investment in the U.S.? A) To compete with TSMC in Europe B) Due to recent commitments with Tesla and Apple C) Because of a decrease in chip production optimism D) To reduce costs by moving operations abroad
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