Samsung’s US chipmaking dreams have given it a $1.21 billion loss so far

The vast majority of Samsung's chip manufacturing is done in South Korea, which is also where chips are made on its most advanced processes. The company does have a chipmaking setup under its Arizona subsidiary in the United States and has spent nearly $20 billion building out a new advanced facility in Taylor, Texas.

Lucrative orders have been hard to come by for Samsung Foundry, even for its advanced 3nm process in South Korea, which is why it has been bleeding cash. It's a similar situation in the US, where the Arizona subsidiary has reportedly lost 1.7248 trillion won or approximately $1.21 billion over the past four years.

Chipmaking in the US is a particularly expensive endeavor but contract manufacturers like Samsung and TSMC need to invest there to insulate themselves from geopolitical shocks. TSMC has been building advanced chipmaking facilities in the US and it has also been facing significant losses.

It's a tough situation for Samsung Electronics as it prepares to bring the Taylor plant online. Construct work is reportedly fully complete but Samsung hasn't brought in chipmaking equipment yet. It should have been put in place by now but Samsung is reportedly hesitant in placing orders as it evaluates the challenging business environment.

It will also have to consider the tariff impact when importing chipmaking equipment in the US. The machines could be hit with up to 25% or more in tariffs, significantly raising the cost for Samsung.

Despite recent reports that Samsung had delayed production at the plant until 2027, the company recently said that it intends to have the Taylor plant operational by 2026 as previously communicated.