Samsung accelerates Texas semiconductor fab development, relocating 1,000 employees to the new site set to produce advanced AI chips by 2026.

Samsung is accelerating its Taylor, Texas chip fab, relocating 1,000 employees to a new office hub. The site, operational by late 2026, will produce advanced AI chips for clients like Tesla and signals a major expansion for its global network.

Project Acceleration and Employee Relocation

Samsung Electronics is accelerating the development of its new semiconductor fabrication complex in Taylor, Texas, as the company begins relocating employees to a newly completed six-story office hub at the centre of the site, The Korea Herald reported on Monday, citing industry sources.

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The Taylor Economic Development Corporation stated in a LinkedIn post that Samsung Austin Semiconductor will relocate approximately 1,000 employees to the office building over the next two quarters, according to the news report. “The fabrication facility is expected to be operational by late 2026, producing some of the smallest and most advanced chips used in AI technology,” the corporation said, as per the report.

Michele Glaze, senior director of communications and community affairs at Samsung Austin Semiconductor, confirmed to local media that the transfers will begin early next year, with additional security, hospitality and landscaping staff to follow as the site ramps up. The moves mark a significant step in bringing the massive Texas campus to life.

A Look at the Massive Taylor Campus

According to The Korea Herald report, the Taylor site spans about 4.85 million square meters and includes new office building, a next-generation fab, two gas and chemical supply facilities, a utility station, an electrical substation, and water and wastewater infrastructure. The total building floor area amounts to roughly 370,000 square meters.

Future Expansion and Investment Strategy

Glaze added that Samsung’s long-term blueprint allows for as many as 10 fabs on the site, depending on chip demand and geopolitical conditions — a signal that the company views Taylor as a core pillar of its global production network. Samsung told investors last month that it will keep its foundry investments “flexible,” pacing spending with customer demand while completing construction and equipment installation in Taylor.

Foundry Business Secures High-Profile Orders

The foundry division has secured several high-profile orders this year, including deals with Tesla and Apple, and aims to achieve profitability by 2027 after narrowing its operating losses in recent quarters.

“We achieved a record level of orders led by advanced nodes, including securing a major 2-nanometer customer. Operating losses narrowed significantly,” the company said in its July-September earnings call. Industry sources estimate third-quarter foundry losses have now fallen below 1 trillion won ($700 million).

Tesla’s AI Chips to be Made in Taylor

Among its biggest wins is the $16.5 billion AI chip supply contract with Tesla, announced in July. As per the report, Tesla CEO Elon Musk has confirmed that the company’s latest AI silicon will be produced at Samsung’s new Taylor facility once it comes online.

Entering a Critical Phase

Samsung unveiled its $17 billion investment plan for the site in November 2021 and began construction in the first half of 2022. With the employee relocation now underway, the project is entering a critical phase ahead of its planned 2026 launch of advanced-chip production.

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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