Samsung plans to invest $1.9 billion in its semiconductor manufacturing plant in Austin, Texas. This will allow the company to upgrade the facility by introducing advanced equipment to produce cutting-edge chips. Industry sees this move as a preemptive supplementary investment ahead of the production of Apple’s new chips.
Samsung aims to boost Texas semiconductor operations with new investments
In August 2025, Apple confirmed the development of innovative new chip technology in collaboration with Samsung. The chip in question is reportedly an image sensor (for the next-generation iPhone), which the Korean foundry will produce at its Austin plant. It plans to begin mass production by the end of next year.
As such, Samsung plans to make a new investment to remodel the facility and meet the demand for Apple’s chips. The exact supply timing and order volume currently remain under wraps, but given the global scale of iPhone sales, the production volume could be substantial.
Meanwhile, the Texas City Council will soon decide whether Samsung’s Texas Enterprise Project designation for its Austin fab should be extended. If approved, the company will be eligible for tax incentives and rebates under the program. Furthermore, Samsung may retain around 500 full-time employees to enjoy benefits from the project. This is another reason why Samsung plans to make new investments.
Since building its Austin fab in 1996, the company has invested more than $40 billion. Apart from the Austin facility, it is also constructing the Taylor fab, expected to begin operations next year. The Taylor plant will make advanced chips, including Tesla’s AI6 chip, using a 2nm process.
Meanwhile, Moody’s, a credit rating agency, expects Samsung to record solid profitability and cash flow over the next 12 to 18 months. The reason is that the memory market continues to see increasing demand for AI-related products. It will be interesting to see whether the Korean film’s decision to make additional investments pays off in the future.