Samsung to invest more than $7 billion into chip packaging in the US
After some hiccups with Samsung's chip manufacturing business in the last couple of years, the company is now determined to regain ground in the segment. Ahead of the South Korea-USA summit on August 25, Samsung is said to invest an additional $7.2 billion into its chip manufacturing facilities in the USA.
The investment will go into an advanced chip packaging facility in addition to the planned $37 billion investment into chip manufacturing. Samsung plans to produce 2nm and 4nm chips to meet demand from new clients such as Apple and Tesla. It's also a way to avoid Trump's tariffs.
The company's original plan included a $44 billion investment, but at the time, the demand for Samsung chips was low, so the Korean tech giant decided to drop the chip packaging facility altogether. Now, it's back on the menu.
The information isn't officially confirmed, but it looks like the company will announce it during the summit on August 25.
Samsung believes it can outperform the competition in the US because it offers a complete manufacturing solution - chip production, chip packaging, and memory chip manufacturing. TSMC, for example, only offers chip manufacturing and packaging, while SK Hynix only does memory chips.
Samsung's Taylor Fab 1 is almost done, and the construction is planned to be complete by the end of this year. However, the equipment needed for chip manufacturing will be installed next year.
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