The plant, as large as nine football fields, will produce 300 millimetre (12-inch) wafers whose yields are 2.4 times greater than the less advanced eight-inch wafers.
The 3.5 billion dollar facility will produce 60,000 such wafers every month.
"Our monumental new fabrication facility that we built in Austin is a testament to the company's commitment to our US customers," vice chairman Yun Jong-Yong was quoted as saying in a statement from Samsung.
"With the Austin plant, Samsung will supply the American market with the most advanced flash memory products available."
Texas Governor Rick Perry said the manufacturing facility represents the single largest foreign investment in the state's history.
"The facility will provide a significant boost to the Texas economy, employment base and cultural life," he said.
The plant stands next to the company's existing semiconductor plant in Austin which was completed in 1997 at a cost of 1.4 billion dollars. Previously, it was the largest foreign project in the state.
The new plant will manufacture NAND flash memory chips, which are widely used in a host of products including MP3 players, cellphones and digital cameras.
NAND chips, which do not lose data when power is turned off, are also used for flash drives that consumers use to store photos, documents, music and other multimedia data as well as the new solid-state drives for PCs.