Samsung's Texas chip plant is reportedly delayed due to lack of customers

Engadget

4 days ago

Samsung has reportedly pushed back the completion of its semiconductor plant in Taylor, Texas, because it has no customers. According to Nikkei Asia , the company is in no hurry to install equipment in the facility due to lack of clients and even though the facility is over 90 percent done. The factory was supposed to come online in 2024, but the company has since pushed back its opening date to sometime in 2026 to upgrade its foundry process. Samsung's fab was only supposed to be able to manufacture 4-nanometer chipsets, but the company adjusted its plans to give it the capability to manufacture more advanced 2-nanometer chips to be able to compete with rivals like TSMC. Still, the problem persisted.
If you'll recall, the plant in Taylor is part of Samsung's planned $44 billion investment in Texas. When the Biden administration announced that it was giving Samsung up to $6.4 billion in grants as part of the CHIPS Act funding, the company said that the money was going to be spent finishing up the campus in Taylor. But the facility's development has been troubled for quite a while now. Last year, Reuters reported that Samsung had delayed the deliveries of advanced-chipmaking equipment from ASML to its Taylor facility, since it had yet to sign up any major customer for the plant.
When Samsung cut jobs around the world last year, some jobs from its Texas operations were reportedly also cut due to production delays. And it's not just the company's employees who were affected by the delays: Samsung's suppliers, some of which are small companies, are also impacted and have had to look for other customers while the facility's completion is on hold. While Samsung has assured Nikkei Asia that it's still planning to open the fab in 2026, analysts previously called that into question seeing as it has yet to land volume clients. In fact, South Korean publication The Elec claimed in April that Samsung is now targeting a February 2027 opening date instead of sometime in 2026. The publication said that in addition to the lack of customers, Samsung's contractors had also pulled out of the project and its on-site workforce is now a fourth of its original size.