Capital · United States

U.S. Foundry Race Intensifies Among Global Firms

Credited to Business Korea · businesskorea.co.kr · 7h ago

Samsung’s Taylor Facility Faces Sharper Competition as Intel and TSMC Expand Their US Manufacturing Plans While TSMC Eyes Texas, GF Is Backed by Japanese Funds

The movement of global companies seeking to expand their foundry production facilities in the United States is accelerating. While TSMC, the world’s number one, is reviewing a new investment in Texas, the U.S.-based GlobalFoundries (GF) is building a plant in New York with Japanese funds. This is the result of local production demands from U.S. clients combined with the U.S. government’s demands for investment from allied nations. With Samsung Electronics also preparing to operate its Taylor plant in Texas, competition to secure clients in the U.S. is expected to become even fiercer in the future.

According to the industry on Oct. 16, TSMC Chairman C.C. Wei stated during the third-quarter earnings conference call on Oct. 15 that major U.S. clients are requesting an expansion of local semiconductor production capacity, noting, “We have already dispatched a team to Texas and conducted an evaluation.” Although there are differences of opinion on the plant operation method, they are also in discussions with “Terafab,” a semiconductor plant promoted by Tesla CEO Elon Musk. The investment scale and timing have not been determined.

TSMC is already investing a total of $265 billion in Arizona to expand its production facilities. It is establishing a base ranging from the production of semiconductor wafers for AI and high-performance computing (HPC) to advanced packaging and research and development. The second plant is under construction and is planned to begin mass production in the third quarter of next year. U.S. clients are requesting domestic investments, citing reasons such as supply chain diversification. As advanced semiconductor production is concentrated in Taiwan, the objective is to reduce geopolitical risks caused by the U.S.-China conflict and secure a stable production volume.

Amidst this landscape, the methods of investing in semiconductor infrastructure within the U.S. are also diversifying. On Oct. 14 (local tine), U.S. President Donald Trump announced that the U.S. Department of Commerce will inject up to $21 billion from Japan’s investment funds in the U.S. into two semiconductor plants being built in Malta, New York. This marks the first time that 100% Japanese funds are directly injected into U.S. semiconductor manufacturing infrastructure. The first plant is planned to begin construction this year and operate in 2029, and the decision on whether to build the second plant will be determined by the end of 2028.

In exchange for providing the funds, Japan will jointly own the plants with the US and can secure supply opportunities for its domestic semiconductor equipment companies, as well as a procurement base for semiconductors produced by GlobalFoundries (GF). GF reduces its initial investment burden amounting to tens of trillions of won while gaining profits from providing technology and operating the plants for at least 20 years. The U.S. government also plans to secure an additional 4% stake in GF through a separate agreement, increasing its holding to about 7%. In addition to this, Intel is currently building two advanced semiconductor plants in Ohio with the goal of operating them between 2030 and 2031.

As competition for U.S. production bases intensifies, Samsung Electronics’ strategy to secure additional clients for its Taylor plant is also expected to become increasingly important. In the case of GF, it focuses on mature processes, which differ from the main processes of the Taylor plant, but if TSMC expands its production base to Texas, the pressure Samsung Electronics faces in the competition to win orders from U.S. clients could also increase.

Samsung Electronics is fostering the first Taylor plant as a core base for advanced foundry. The first Taylor plant has currently begun test production on some production lines and is preparing for operation within the year. The second Taylor plant is also planned to begin construction at the end of this year with the goal of mass production in 2030.

The strategy for the Samsung Electronics Taylor plant is to expand its client base in the AI and high-performance computing (HPC) sectors, using its supply to Tesla as a stepping stone, and to strengthen its competitiveness in the 2-nanometer process. In July last year, it won an order for artificial intelligence (AI) chips worth 23 trillion won (about $17.28 billion) from Tesla. Moving forward, securing stable mass production and yield, as well as whether additional long-term supply contracts are signed, are expected to become variables in the U.S. foundry market.

The U.S. demands for expanding local semiconductor production could extend beyond the foundry sector into the memory sector. Consequently, there is a possibility that both Samsung Electronics and SK hynix will face pressure surrounding the expansion of production facilities in the U.S. and the schedules for plant completion and operation.

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Capital · United States

Interview: SEMI CEO sees US$3 trillion chip industry by 2035, as trusted partners reshape supply chain

Reading from TheElec · Credited to DigiTimes $ · digitimes.com · 8h ago

Photograph · DigiTimes

"Let's toast to $1 trillion and beyond."

Joe Stockunas, president of SEMI Americas, proposed the toast at the opening ceremony of SEMICON West 2026 at Moscone Center in San Francisco on Oct. 13. The celebration marked the first time cumulative global semiconductor market revenue had surpassed $1 trillion in the first eight months of a year.

Ajit Manocha, president and chief executive officer of SEMI, predicted when he took office in 2017 that the semiconductor market would reach $1 trillion by 2030. The market crossed that threshold this year, about four years ahead of his forecast, reaching the milestone in just eight months rather than a full year. SEMI expects annual semiconductor market revenue to reach $1.5 trillion in 2026.

"When I predicted the semiconductor market would reach $1 trillion by 2030, everyone said, 'What are you talking about?'" Manocha said. "Two years later, many people began to agree." Actual growth has been much faster than market expectations, he added.

"The market could reach $2 trillion to $3 trillion by 2035," Manocha said. "It took 50 years to reach $500 billion, but only five years to reach $1 trillion." He added that anything could happen over the next five years.

Manocha cited investment in new semiconductor fabrication plants, or fabs, and data center expansion as key drivers of market growth. A total of 102 fabs are targeted to begin operations by 2029, with 82 already under construction. There are currently 479 operating data centers, with another 77 planned. Fab expansion is expected to increase demand not only for equipment but also for materials and packaging.

SEMICON West 2026 runs from Oct. 13 to 15 at the South and North Halls of Moscone Center in San Francisco. The event features more than 1,500 booths and over 500 speakers across more than 60 presentation sessions. Organizers expect attendance to exceed 35,000 this year.

Next year's SEMICON West will take place from March 30 to April 1, 2027, at the Phoenix Convention Center in Arizona. SEMI said it moved the event to an earlier date to avoid conflicts with global exhibitions concentrated in the second half of the year. The venue was also relocated to Phoenix, home to numerous semiconductor fabs, to strengthen ties with the local industry ecosystem.