Samsung resumes construction of chip factory in the US after contract with Tesla

South Korean company Samsung has renewed investments in the construction of a chip manufacturing plant in Taylor, Texas, USA, ET News reports, citing sources familiar with the situation.

Construction of the facility began in 2021, but the company suspended work in September 2024 due to low demand for its chips. In July 2025, Tesla signed a contract with Samsung to supply 2-nanometer chips, which was the impetus for the project's revival. Under the new plan, Samsung will invest $4 billion in the plant.

The company has already ordered about $2.87 billion worth of equipment and has begun recruiting engineering staff for construction. The hiring will take place in two phases, in September and November.

According to Samsung representatives, the recruitment process has been completed, and the company's partners have already placed orders for equipment.

According to experts, mass production of chips at Samsung's new factory in Taylor should begin late next year or early 2027. This means that Tesla AI semiconductors could begin mass production during this period as well.

Elon Musk previously stated that Tesla would participate in optimizing production processes at the Samsung factory and would personally oversee production to accelerate progress.