Samsung Delays Equipment for Texas Chip Plant Amid Foundry Struggles

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Samsung has delayed the delivery of chip manufacturing equipment from ASML for its new plant in Taylor, Texas. It has reportedly also postponed orders for other instruments for the under-construction factory. The company’s foundry division is battling various adversaries, prompting a reevaluation of its equipment deliveries.

Samsung delays production at its new chip plant amid technological struggles

Samsung is constructing a new chip factory in Taylor, Texas. It’s the company’s second semiconductor site in the US — the first one is located in Austin, Texas, and has been operational for decades. The upcoming factory was also expected to be fully operational in 2025. However, according to a Reuters report, the Korean firm has postponed the delivery of key equipment for the site from the Dutch manufacturer ASML.

This comes amid Samsung’s technological struggles in the foundry sector, particularly with low production yields of its advanced 3nm chips. Taiwan’s TSMC continues to dominate the semiconductor production industry thanks to its superior yield. Its market share climbed to 61.7% in the first quarter of 2024, compared to Samsung’s 11%. The firm also secured major contracts from all big chipmakers globally, leaving virtually nothing to Samsung.

All of this may have contributed to Samsung’s postponed deal. Reports say the company also has yet to receive the $6.4 billion subsidy from the US government. The Biden administration granted subsidies to all major chip companies to expand production in the country. The subsidies are part of the new CHIPS Act. A delayed credit of the fund may have affected the Korean firm’s investment plans.

Interestingly, Samsung plans to build an additional chip factory in Taylor, Texas. The company is increasing the investment amount from the original $17 billion to around $44 billion. It could further increase in the coming years. However, with the ongoing site facing delays, it remains to be seen if Samsung will postpone the construction of the new facility. Expect more details to emerge in the coming months.

Written by

Puskar Adhikari

Covering Samsung news and deals at SammyGuru.

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