Samsung Electronics is reportedly preparing to invest an additional $7 billion in the United States to establish an advanced semiconductor packaging facility, following its recently signed $16.5 billion chip foundry agreement with Tesla.

According to The Korea Economic Daily, the investment is expected to be announced during or after ongoing U.S.-Korea trade negotiations. Samsung Chairman Jay Y. Lee is likely to visit the U.S. soon as part of these talks, signaling the strategic importance of this expansion. The move is also seen as a potential bargaining chip for South Korea in securing a favorable tariff agreement with the United States.

Samsung originally announced a $17 billion wafer fab project in Taylor, Texas, back in 2021. However, rising inflation and construction costs have pushed the investment estimate to $17 billion and delayed the timeline. In April, The Wall Street Journal reported that Samsung aimed to raise its U.S. investment to $44 billion by adding a new wafer fab, an advanced packaging plant, and an R&D center. Due to economic uncertainties and a lack of anchor customers, those plans were reportedly scaled back.

Now, with the Tesla deal in hand—valued at 7.6% of Samsung's projected 2024 revenue—the company is regaining confidence in its U.S. expansion. The new packaging facility would make Samsung the first to bring high-end semiconductor packaging capabilities to the U.S., as TSMC's advanced packaging lines aren't expected to enter mass production until at least 2029.

Samsung's advanced packaging facility is expected to enhance its competitiveness in the U.S. foundry market and attract more domestic customers seeking alternatives to TSMC. The planned facility will complement Samsung's chip manufacturing operations in Taylor, positioning the Korean firm as a stronger player in the U.S. semiconductor ecosystem.

Samsung is not alone in ramping up U.S. investment. SK hynix is also reportedly planning to build an advanced DRAM fab for high-bandwidth memory (HBM) production, aimed at serving major clients like NVIDIA. Both initiatives are seen as part of broader efforts by the South Korean delegation to deepen semiconductor ties with the U.S., with a final agreement expected soon.