> ## Content Index > Fetch the complete content index at: https://www.sotkn.com/llms.txt > Use this file to discover other available public pages before exploring further. # Samsung to start a second Texas fab with Tesla its only named buyer - URL: https://www.sotkn.com/wire/samsung-taylor-fab-2-november-tesla-only-named-customer-wire/ - Published: 2026-10-17T23:44:11.000Z - Updated: 2026-10-17T23:44:11.000Z - Description: On 15 October Samsung said construction of a second 2nm chip plant in Taylor, Texas, starts in November, for mass production in 2030. Its first Taylor fab is still in qualification, a year late, and Tesla is the only customer it has named. - Author: Sean - Tags: #desk-wire `WIRE` · `SEMICONDUCTORS` · `UNITED STATES` · Data as at 17 Oct 2026 Samsung is starting a second chip plant in Taylor, Texas, before the first one is making chips in volume. On **15 October 2026** the head of its Austin and Taylor sites said construction of **Fab 2** begins in **November**. It is planned at about **2.7 million square feet**, roughly **1.5 times** the size of Fab 1, with mass production targeted for **2030**. Fab 1 is still in qualification, due online by the end of 2026, about a year later than first planned. Its only officially named customer is **Tesla**, under a **$16.5 billion** deal that runs through 2033\. On the [Semiconductors layer](https://www.sotkn.com/stack/semiconductors/), this is a foundry building capacity ahead of the customers it still has to win. ## What happened The second fab **Construction of Fab 2 starts in November. About 2.7 million square feet, 2nm, mass production targeted for 2030** Samsung said on its July earnings call that it would start building by the end of 2026, because leading-edge capacity is lagging demand The first fab **Fab 1 is "still on track" to be online by the end of 2026, with volume production in 2027** Tools have moved in since spring. Samsung must now qualify the tools, then the factory, then the product The customer **Tesla is the only officially named customer, with a $16.5 billion chip deal that runs through 2033** Samsung declined to name anyone else, and said many companies have shown interest in its 2nm process The money **More than $37 billion planned across Central Texas, with up to $4.745 billion of CHIPS Act grants** The same event announced $22.84 million for local schools, nonprofits and trades training ## Why cash cares A building is not a customer. Samsung now has one fab that is almost ready and a second that is about to be dug, and so far one named buyer for what comes out of them. Start with who gets paid first: the people who build. Construction crews, steel, concrete and the trades are paid from November, out of Samsung's own budget, years before Fab 2 makes anything. The local community is paid now too. At the same event Samsung announced **$22.84 million** for 2026, including **$10 million** for 14 nonprofits in Taylor and Manor, **$10.64 million** for university and college workforce partners through 2029, and **$1.5 million** for a new skilled trades program with the Taylor school district for electricians, welders, pipefitters and HVAC workers. The toolmakers are paid next, when tools move in. That has been happening at Fab 1 every week since spring, according to Jon Taylor, the Samsung executive who leads the Austin and Taylor sites. Fab 2 is a shell for now. On its July earnings call Samsung said it would plan further capacity in phases, based on customer orders. So the big tool orders for Fab 2 follow customers, not concrete. Samsung is paid last. A foundry earns when a customer's chip passes qualification and wafers ship in volume. For Fab 1 that is 2027\. Tesla is the one customer Samsung has named, and it pays for chips, not for floor space. Here is our own arithmetic, not a company figure. Samsung first announced Taylor in November 2021 as a **$17 billion** project. More than **$37 billion** across Central Texas is about **2.2 times** that. The CHIPS Act grants of up to **$4.745 billion** are about **13%** of the $37 billion. Fab 1 was first expected to be near completion by the end of 2025 and is now due by the end of 2026, about **12 months** later. If Fab 2 is 2.7 million square feet and 1.5 times Fab 1, Fab 1 is about **1.8 million**. From a November 2026 start to 2030 is about **three to four years** before Fab 2 makes chips in volume. Samsung says the site could hold as many as **10** chip plants, so two would be about **20%** of that plan. ![Taylor ledger: Fab 1 in qualification with one named customer, Fab 2 starting construction in November 2026 for 2030, and who gets paid when](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/samsung-taylor-ledger-print.png) **Figure: Taylor ledger.** Two fabs on the timeline, one named customer. The 2.2 times, 13%, 12 months, 1.8 million square feet and 20% figures are our arithmetic on the Austin American-Statesman's 15 October report, Samsung's 15 October release and Austin Business Journal figures reported by Connect CRE. ## The step that is still open Qualification, then customers. Jon Taylor described the order himself: "Qualifying the tools, then we have to qualify the factory, and then we have to qualify the product. It's kind of a lengthy qualification phase." Until a customer's chip passes that last step, Fab 1 earns nothing, however many tools are running. Then there is the customer list. The American-Statesman reported that Fab 1 slipped because of supply chain issues and reported struggles to nail down customers. A year later, Tesla is still the only one Samsung has named. Taylor said Tesla's plan to build its own chip plant does not change the deal, and that "we've seen a lot of interest from other companies" in Samsung's 2nm process. Interest is not a signed order. That is why the November date matters less than it sounds. Fab 2's piers and steel can go up on Samsung's own budget. Filling it with tools, and then with wafers, needs buyers who are not yet public. Ready is not paid: a fab earns only when the building, the qualified process and the customer's order arrive together, and in Taylor only the first of those three is certain. The demand is real. TSMC said this week that [demand for its 2nm chips is still above supply](https://www.sotkn.com/wire/tsmc-q3-2026-2nm-8-percent-demand-above-supply-wire/), and ASML has said its [2027 and 2028 supply won't meet chip demand](https://www.sotkn.com/wire/asml-2027-2028-supply-short-of-chip-demand-wire/). The open question is whether that demand reaches Samsung's 2nm line, or waits for TSMC's. ## The second-order read **Who gets paid.** Builders and trades, from November. Local schools and nonprofits, now. Toolmakers, as tools move in, which for Fab 2 depends on orders. **Who pays.** Samsung, from its own budget, with up to $4.745 billion of CHIPS Act grants. Tesla, through chip purchases, once Fab 1 runs in volume. **Who waits.** Samsung's foundry revenue in Taylor, until a customer's chip passes qualification. **Stuck step.** Qualifying Fab 1's 2nm product, then naming a second customer large enough to fill a fab 1.5 times bigger. ## Three cautions Samsung has not given a cost for Fab 2\. The more than $37 billion covers its plans across Central Texas, including Austin, so it is not a price for either Taylor fab. The 2.7 million square feet, the 1.5 times and the 2030 date come from Samsung's statements as reported by local outlets. Samsung's own 15 October release covers the community money, not Fab 2. The $16.5 billion Tesla deal is a contract value over many years. It is revenue to Samsung if Tesla buys as planned, not profit, and Samsung has not said how much of Fab 1 it fills. ## What to watch - **November**: whether main construction of Fab 2 actually starts, and who the contractors are. - **Fab 1 qualification**: whether it is online by the end of 2026 as promised, then volume in 2027. - **A second named customer**: any public 2nm order for Taylor beyond Tesla. - **Samsung's full third-quarter results**: what it says about foundry orders and Taylor spending. - **Tool orders**: when equipment for Fab 2 starts to move, which would show customers have signed. *Read: [Semiconductors](https://www.sotkn.com/stack/semiconductors/), [EUV vs DUV](https://www.sotkn.com/explained/euv-vs-duv/) and [what Applied Materials does](https://www.sotkn.com/stack/semiconductors/what-does-applied-materials-do/)* --- **Get the Wire.** A free brief every day, here and in your inbox. **[Subscribe free →](https://www.sotkn.com/#/portal/signup)** Not investment advice. Do your own research. The 2.2 times, 13%, 12 months, 1.8 million square feet, three to four years and 20% figures are our arithmetic. ## References 1. [Austin American-Statesman, "Samsung's second Taylor chip plant will begin construction next month amid AI chip demand"](https://www.statesman.com/business/technology/article/samsung-taylor-ai-chip-demand-22475945.php?ref=sotkn.com), 15 Oct 2026\. Fab 2 construction from November; Fab 1 "still on track" for end of 2026, about five years after the $17 billion project was announced; Fab 1 delayed from end of 2025 by supply chain issues and reported struggles to find customers; qualification of tools, factory and product; Tesla the only officially named customer, $16.5 billion; up to 10 plants on more than 1,200 acres. 2. [Samsung Austin Semiconductor, "Samsung Austin Semiconductor Announces More Than $22.8M in Investments to Support Communities and Careers in Central Texas"](https://semiconductor.samsung.com/sas/local-news/samsung-austin-semiconductor-announces-more-than-22m-in-investments-to-support-communities-careers-in-central-texas/?ref=sotkn.com), news release, 15 Oct 2026\. $22.84 million for 2026: $10 million Spark! grants to 14 nonprofits, $10.64 million for workforce partners 2026 to 2029, $1.5 million STEP trades program. 3. [Connect CRE, "Samsung to Add Second Fab to Taylor Facility"](https://www.connectcre.com/stories/samsung-to-add-second-fab-to-taylor-facility/?ref=sotkn.com), 16 Oct 2026\. Fab 2 about 2.7 million square feet, 1.5 times Fab 1, mass production targeted for 2030 (citing the Austin Business Journal); Fab 1 volume production in 2027; Tesla deal through 2033; more than $37 billion across Central Texas; up to $4.745 billion in CHIPS Act funding. 4. [TrendForce, "Samsung to Start Taylor Fab 2 Build by End-2026, Targets 2030 Mass Production; Eyes 1.4nm Expansion"](https://www.trendforce.com/news/2026/07/31/news-samsung-to-start-taylor-fab-2-build-by-end-2026-targets-2030-mass-production-eyes-1-4nm-expansion/?ref=sotkn.com), 31 Jul 2026\. Samsung's second-quarter call: leading-edge capacity lagging demand, Fab 2 construction by end of 2026, further capacity planned in phases based on customer orders (citing Yonhap). 5. [Taylor Press, "Samsung announces millions more in Taylor investments"](https://www.taylorpress.net/article/12462,samsung-announces-millions-more-in-taylor-investments?ref=sotkn.com), 15 Oct 2026\. Made in Texas: Boundless Opportunity event at the Taylor plant; Samsung's November 2021 announcement of the Taylor fab.