[News] Samsung to Start Taylor Fab 2 Build by End-2026, Targets 2030 Mass Production; Eyes 1.4nm Expansion

Alongside its second-quarter earnings, Samsung also outlined the next phase of its U.S. foundry expansion. According to Yonhap News, the company said during its earnings call that it is preparing to begin construction of Taylor Fab 2 by the end of 2026, targeting mass production in 2030.

On its Taylor fab expansion plans, Samsung said the pace of expanding leading-edge production capacity is currently lagging demand. The company added that Taylor Fab 1 remains on track to begin operations in 2026, followed by a gradual expansion of 2nm production capacity.

Notably, as the report indicates, the company also said that customer inquiries for its 1.4nm process have been increasing and that it is considering securing additional fab capacity. It added that detailed plans will be developed in phases based on customer orders and ongoing discussions.

Samsung Foundry Sees 2nm Order Growth

Samsung Electronics expects 2nm orders in 2026 to more than double from last year, according to The JoongAng. The company also said utilization rates have improved across all nodes, with 8nm and below reaching full utilization. The report adds that advanced nodes are expected to contribute more than half of total foundry revenue.

The JoongAng notes that profitability is expected to improve significantly in the second half of the year, supported by the mass production of the second-generation 2nm process, improved utilization and yields, and the impact of price increases. The company also said the foundry business could turn profitable in the near future.

Meanwhile, Seoul Economic Daily notes that Samsung Foundry’s business mix is shifting as demand from the AI and HPC markets continues to grow. Revenue from AI- and HPC-related products is expected to increase from the high teens as a percentage of total revenue last year to more than 30% this year. The report says this marks an early sign that Samsung Foundry is reducing its reliance on mobile application processors (APs) and rebalancing its portfolio toward AI accelerators and custom semiconductors.

Read more

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(Photo credit: Samsung)