The second AI chip factory from Samsung is coming to Texas. Taylor City Council just greenlit the next phase of Samsung’s chip cluster. This is a second full-scale foundry, same footprint as the first, clocking in at 2.7 million square feet.

The first fab is gearing up for mass production next year, tied directly to Tesla’s AI5 and AI6 chips. Samsung landed a $16.5 billion contract there; Elon Musk said AI5 mass production should hit around mid 2027.

Samsung picked Taylor back in November 2021 and broke ground in 2022. KoreaJoongangDaily reports that Samsung is not just building the Texas Fab 2, but also expanding its ambitions to the Fab 2 in the United States.

Taylor issued a temporary permit covering 88,000 square feet inside Fab 1 back in February. Samsung’s deal with Taylor requires 6 million square feet of total campus facilities, manufacturing space, utilities, and infrastructure.

Another million square feet has to be added by 2028. Samsung bought 1,268 acres out there. Enough land for 10 fabs if they want to keep going. The company has also posted 180 job openings for Taylor recently.

Taylor’s site is built around high-performance computing and automotive chips using 2nm process. The company is projecting more than 130 percent year-over-year growth in 2nm orders this year, fueled by AI and HPC demand.

Big tech is ramping custom silicon shipments starting in 2026, and Samsung Foundry is expecting a real top-line surge in 2027 when those production cycles fully kick in.

TSMC’s dominance isn’t going anywhere, but the cracks in its capacity are real.

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The company's first demonstration mission is expected in early 2027.