After winning Tesla orders, Samsung s confidence increased greatly and invested another $7 billion in the US to build advanced packaging factory

 11:00am, 2 August 2025

According to reports from South Korea's Economic Daily, after Samsung and Tesla reached a chip foundry contract worth US$16.5 billion, Samsung is preparing to invest an additional US$7 billion in the United States in order to establish a semiconductor advanced packaging factory in the United States.

Samsung Chairman Lee Jae-kun is expected to visit the United States soon to participate in the ongoing trade negotiations. Therefore, Samsung plans to formally announce this plan to increase investment in the United States during or after the negotiation period is over. It is expected that this investment will also be a role for South Korea to play a code role in reaching tax agreements with the United States.

Samsung announced the construction of a 5-nanometer-processing crystal factory in Taylor, Texas, United States as early as 2021. However, facing local challenges such as inflation, labor and material costs, the investment of the crystalline factory eventually grew to US$17 billion, and the overall progress has continued to delay.

In April 2025, Huaer Street Journal reported that Samsung plans to build a new advanced process crystal factory, an advanced packaging factory and a R&D center based on the previously announced investment of US$17 billion, making the total investment reach about US$44 billion. However, the latest news says that due to economic ease and lack of customers, the investment eventually reduced by billions of dollars and further delayed the time for the first wafer factory to be produced.

However, after Samsung successfully won the chip foundry contract of Tesla's $16.5 billion, it greatly strengthened Samsung's confidence in continuing to invest in the United States. Therefore, Samsung is expected to accelerate the production of its Taylor Crystal Factory. At the same time, in order to complete the main manufacturing process locally, Samsung plans to invest an additional $7 billion in the United States to establish a semiconductor advanced packaging factory in the United States.

At present, the United States does not have any high-level advanced packaging factories, and the advanced packaging built by Taiwan Electric Power in the United States is expected to be mass-produced until around 2029. Therefore, for Samsung, establishing advanced packaging factories in the United States as early as possible will help Samsung improve its competitiveness in the US crystal OEM market and better compete with Taiwan Electric.

In addition, Samsung is not the only Korean company to invest billions in the United States. Competitive rival SK Hynix is also planning to establish advanced DRAM factories in the United States for HBM production to meet the needs of major customers such as NVIDIA. These investments will also be an important discussion code for the Korean representative group that conducts tax-related negotiations with the United States, and it is expected that both parties will be able to achieve an effective conclusion.