Advanced Micro Devices (AMD) and Alphabet (GOOGL) are in talks with Samsung Electronics (SSNLF) to build next-gen chips in Texas. Both companies are exploring the use of Samsung’s new factory in Taylor, Texas, to manufacture 2-nanometer chips. These chips are expected to be the most advanced available when the plant is ready in 2026.
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The reason is simple: Taiwan’s rules prevent Taiwan Semiconductor Manufacturing Company (TSM) from exporting its most advanced chip-making tech to other countries. That policy creates a gap in the U.S. market. Samsung is now working to fill that space.
Taiwan’s policy leaves room for others
TSMC controls around 71% of the global foundry market. However, it must comply with Taiwan’s “N-2” rule. That means the company can only make chips overseas that are at least two generations behind its best technology in Taiwan. While TSMC will build 3-nanometer chips in Arizona by 2027, it will not offer 2-nanometer chips outside Taiwan.
At the same time, demand for advanced chips is high. TSMC’s CEO recently said the company’s top-end chip supply is about three times short of demand. Apple (AAPL) has already secured almost half of TSMC’s 2-nanometer production for 2026. Nvidia (NVDA) is expected to join in 2027. This leaves limited space for others, and that’s where Samsung comes in.
Samsung’s Texas site gains momentum
Samsung’s Taylor, Texas, plant is on track to finish construction by mid-2026. The company expects to begin 2-nanometer chip production later that year. Recent reports indicate Samsung’s chip yields have reached 55%-60%. Earlier this year, yields were below 30%, so this marks a steady improvement.
Samsung has already signed a $16.5 billion deal with Tesla (TSLA) to make the AI6 chip. The chip will power Tesla’s next wave of self-driving features. On top of that, Samsung is also producing chips for Apple image sensors, Google’s custom chips, and custom mining chips for Chinese firms.
Both AMD and Google have visited Samsung’s Texas site. AMD is already testing Samsung’s new 2-nanometer process. Google’s chip team has also discussed volume plans with Samsung.
Samsung’s Texas fab could be the only U.S.-based plant to offer 2-nanometer chip production when it opens. That makes it a key asset for U.S. tech firms racing to expand AI and cloud infrastructure.
For AMD and Google, using Samsung could reduce reliance on TSMC. It also helps them meet U.S. goals to secure more advanced chip production at home. While TSMC still leads in performance and scale, Samsung is now positioning itself as a solid second choice, especially for companies that need top-tier chips in the U.S. in the near term.
We used TipRanks’ Comparison Tool to compile all the stocks mentioned in the piece. It’s a great tool for gaining a broader perspective on each stock and the Semiconductor industry as a whole.
