ASML, the world’s largest manufacturer of chipmaking equipment, recently cut its 2025 sales forecast, stating that market weakness was one reason. While the company did not explicitly name its clients, Samsung was recently reported to have postponed the delivery of the Dutch firm’s equipment for its Taylor plant in Texas.
The Korean giant has been experiencing a major slump in the foundry business, as it has failed to seal a deal for chip orders due to poor yields of its 3nm GAA process. This setback and chain of events forced Samsung to issue an apology during its Q3 2024 earnings guidance, stating that it has been unsuccessful to capitalize the AI boom, and has failed to secure NVIDIA as a customer for its HBM memory.
EUV machinery was likely ordered by Samsung to be used in the mass production of 3nm GAA wafers
Three people familiar with Samsung’s plans informed Reuters that Samsung delayed purchasing ASML equipment for its upcoming factory because it did not secure any major customers. The report also states that Samsung has held off on placing orders for some clients, forcing them to look for other alternatives.
The company was previously reported to have withdrawn its personnel from the Taylor plant due to the setbacks it faced, but a Samsung executive denied these claims, stating that the plant will be completed by mid-2025 and that the employees are routinely cycled off to other locations. Regardless of how well executives attempt to hide the situation, it is no secret that Samsung trails heavily behind TSMC.
In fact, a previous report mentioned that some Korean firms who used to place orders with Samsung have switched to TSMC for the latter’s more mature nodes, inflicting yet another blow. The technology behemoth has attempted to alleviate these wounds by reducing its executive headcount from various semiconductor divisions as it carves a healthier path toward profitability.
As for ASML, each of its EUV machines costs a whopping $200 million, so it is understandable why Samsung was forced to delay deliveries, which is the prudent thing to do, given that there are no customers lined up to take advantage of the foundry’s cutting-edge nodes.
News Source: Reuters
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