The Korean summit is coming. Korean media: Samsung, SK Hynix investment case

Tech 10:50am, 13 August 2025 176

Korean media reported that just as the United States and South Korea scheduled a summit on August 25 and AI chips became an important meeting, Samsung Electronics and SK hynix are intensifying their completion of additional investment plans in the United States.

Business Korea quoted industry news reports on the 11th that Samsung won orders from major American technology customers such as Tesla Inc. and Apple Inc., and is currently strongly considering expanding investment in the United States, including investing an additional $10 trillion (about $7.2 billion) in chip packaging facilities.

According to reports, Samsung originally planned to invest $44 billion in the crystalline foundry factory in Taylor, Texas, but then due to poor yields, it decided to reduce its investment to $37 billion by the end of 2024. The original investment plan covers 4-nanometer and 2-nanometer crystalline foundry factories, as well as advanced chip packaging facilities, and advanced science and technology research and development centers. However, Samsung decided to abandon the investment plan of advanced packaging facilities (US$7 billion) at that time, mainly because it was difficult to get customers to order.

However, in order to exempt the US government from taxes on chips, Tesla decided to sign a 23-megatron AI chip supply contract with Samsung on July 28, and Apple signed an image sensor supply contract with Samsung 10 days later, which triggered the demand for setting up advanced packaging factories.

To avoid American class taxes, the entire process - from chip manufacturing to final packaging - must be completed in the United States. This is just the signature advantage of Samsung: memory, OEM, packaging a dragon. Taylor Fab 1 has completed 91.8% by the end of the first quarter of this year. It is expected to be completed by the end of October and the dust-free room will be completed by the end of the year. Next year, production equipment will be continuously imported. Manufacturers that supply materials are also discussing expanding shipments, as local demand will only increase in the future.

On the other hand, after SK Hynix announced last year that it would spend $3.87 billion in Indiana to build an advanced packaging factory for high-frequency wide memory (HBM) and other products, the factory is about to break ground. The company plans to start mass production of next-generation HBM and other products in the second half of 2028, but it may expand investment scale, accelerate investment process, or include production projects other than packaging.

Samsung Electronics and SK Hynix's expansion actions in the United States are expected to be a highlight of the Korean Summit in two weeks.

Extended reading: Trump 100% chip tax responsibilities who has the greatest impact? South Korea: Samsung, SK Hynix is not suitable