It seems like Samsung's ambitions to create an influence over the U.S chip markets have started to falter, as it is now reported that the flagship Taylor facility opening is now delayed.
Samsung Fails to Deliver Chips To America On-Time Despite Getting Over $37 Billion In Incentives
Regarding manufacturing in America, companies like Samsung and TSMC rushed over to create facilities in the region, following the CHIPS Act grants that came under the Biden administration. While the markets were optimistic that semiconductor firms were setting up fabs in the US, many of the large-scale projects announced either became victims of delays or didn't start at all. A similar case was with Samsung's Taylor facility, which was said to start production by 2024, but fast forward almost a year and a half, and there are no signs of opening for now.
Nikkei Asia reports that Samsung's fab in Texas is now said to be opening in 2026 despite being near completion. The report also reveals that the Korean giant is unable to secure customer orders for its Taylor facility. And it seems like the local demand for chips is more oriented towards higher-end processes like the 4nm and beyond, and Samsung's Taylor facility apparently doesn't have the sufficient production lines right now to meet the demand, which is interesting.
Local demand for chips isn’t particularly strong, and the process nodes Samsung planned several years ago no longer meet with current customer needs. However, overhauling the plant would be a major and costly undertaking, so the company is adopting a wait-and-see approach for now.
However, the Taylor facility is claimed to be 91.8% completed, as reported in internal documents back in March, so it seems like Samsung is adjusting its plans for what process to supply to domestic customers. The Korean giant was rumored to be preparing 2nm production lines in its Taylor facility a few days ago, and now, it is most likely that the company would supply the process to American customers by 2026, almost near to when 2nm will be available at TSMC Arizona.
One of the bigger reasons why Samsung has delayed the Taylor facility opening is how TSMC has managed to gain all the attention in the domestic supply chain, following its monumental success with the Arizona fab. The Taiwan giant is said to be booked entirely for now, and is supplying 4nm to the likes of NVIDIA and AMD, which is why they dominate domestic markets. Samsung seems to be beaten in the U.S. as well, despite getting over $37 billion in grants from the CHIPS Act.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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