Samsung Electronics will commence construction of its second semiconductor fabrication plant in Taylor, Texas, by the end of 2026, the company announced Thursday.

The facility, designated Taylor Fab 2, represents a significant expansion of the South Korean chipmaker's US operations, following the initial fab that began production earlier this year.

The decision underscores Samsung's commitment to capturing a larger share of the US foundry market, directly challenging Taiwan Semiconductor Manufacturing Co (TSMC), which dominates the advanced node space.

By accelerating the build-out, Samsung aims to secure long-term contracts with US-based customers, including major tech firms seeking supply chain diversification away from Asia.

This expansion aligns with broader geopolitical trends favoring onshoring of critical semiconductor manufacturing.

The US government has incentivized such investments through the CHIPS and Science Act, offering substantial subsidies to companies that build domestic capacity.