Exclusive: Mass production at Samsung’s Taylor plant pushed back to next year

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Exclusive: Mass production at Samsung’s Taylor plant pushed back to next year

Published: 03 Mar. 2026, 05:00 Updated: 03 Mar. 2026, 12:19

LEE JAE-LIM
[email protected]

PARK EUN-JEE
[email protected]

Audio report: written by reporters, read by AI

An aerial view of Samsung Electronics' Taylor site under construction. [TAYLOR ECONOMIC DEVELOPMENT COOPERATION]

Mass production at Samsung Electronics’ Taylor plant, once expected as early as this year, has been pushed back to early next year, according to multiple sources with knowledge of the matter.

“It appears that even internally at Samsung, the timeline for the start of mass production has not yet been finalized,” a source familiar with developments told the Korea JoongAng Daily. “The schedule has continued to slip, and it is now understood that a full-scale ramp-up for a meaningful volume output could be pushed to early next year.”

Another source at a semiconductor materials firm echoed the setback.

“The plant has begun pilot operations, but full-scale manufacturing has already been significantly delayed,” the source said. “The timeline appears to shift frequently, and there is no clear start-of-production milestone,” he said, adding that there appear to be factory utilization issues with specifying further.

The change in the timeline comes as a surprise, given earlier expectations that production ramp-up would begin by the end of this year. During its January conference call, the chipmaker said that the foundry process for its second-generation 2-nanometer chips, also known as SF2P, was set to enter mass production this year, which many took to refer to a ramp-up at the Taylor site.

“For 2-nano, we expect our first-generation mass production to further stabilize, and we are working to secure manufacturability and develop design infrastructure for the second-generation process targeting mass production in the second half of the year,” Kang Suk-chae, executive vice president of Samsung Foundry, said in January.

"Taylor fab in the U.S. is under construction as planned, aiming for a timely commencement of operations this year," Kang emphasized.

Samsung also projected on-year growth in 2-nanometer orders of more than 130 percent this year, driven by the production of high-performance computing and AI chips on its second-generation 2-nanometer process in 2026.

The 2-nanometer process is to be developed at both the Taylor site and its Pyeongtaek campus in Gyeonggi, but facilities at the Korean site are still under construction, and those originally planned as a foundry line have since been switched to focus on expanding memory production to meet surging AI-driven demand.

Analysts believe that the large-scale production of Samsung's SF2P will mainly take place at the Taylor site due primarily to better accessibility to major target clients, while the Korean facilities are responsible for sample production in the early stage.

Multiple reports said that Samsung Foundry is in talks to secure major orders from Big Tech firms including Google, AMD and more recently, ByteDance.

A Samsung Electronics spokesperson clarified that references to the start of production should be understood as the completion of preparations for mass manufacturing by the end of 2026.

“The plant will be ready to be operational by then,” the spokesperson said.

Since 2025, Samsung has maintained that production at its Taylor site will begin in the second half of 2026, with construction moving forward as planned following earlier delays. The latest developments suggest the company may be drawing a distinction between the start of production and full-scale mass production.

A view of Samsung's Taylor foundry plant under construction [SAMSUNG ELECTRONICS]

Confidence in the 2026 mass production timeline strengthened after the company secured a $16.5 billion contract with Tesla to manufacture AI6 chips in July of last year. Elon Musk later said the chipmaker would produce a portion of AI5 chips as well.

Samsung has already begun limited activities at the site after acquiring a temporary certificate of occupancy from the city of Taylor covering approximately 88,000 square feet at Fab 1. Trial operations, including tests of its extreme ultraviolet lithography equipment, are reportedly set to begin this month.

First announced in November 2021, the Taylor project has faced multiple delays, prompting the Texan city to add a clause on stricter timeline checkpoints to keep construction on track, setting a goal for Samsung to complete a total of 6 million square feet by 2026, with an additional 1 million square feet to be added by 2028.

A screen capture of Samsung Electronics' career site for Taylor location, which is hiring 180 positions that are accepting applications until end of 2026. [SAMSUNG ELECTRONICS]

Signs of progress are nevertheless emerging: The company has recently opened 180 job positions at the site, spanning facilities and infrastructure build-out, tool installation and equipment readiness, as well as yield engineering and manufacturing support. Applications for these roles will be accepted through Dec. 31.

Musk previously stated on X that mass production of the AI5 chip is expected around mid-2027.

A third source told the Korea JoongAng Daily that a clearer production road map could emerge by June.

“Based on public information, the facility itself is not particularly large — roughly half the size of one of Samsung’s Pyeongtaek lines — and it is dedicated entirely to foundry production,” the source said. “Regardless of the pace of ramp-up, production is expected to begin this year. Major equipment installations are anticipated around March or April.”

Updated, March 3, 2026: Added a quote from Samsung Electronics.

BY LEE JAE-LIM,PARK EUN-JEE [[email protected]]