Jenith
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Despite spending tens of billions of dollars each year in recent years, Samsung hasn't achieved good results from its semiconductor chip business. Micron and SK Hynix have beaten the company in the in-demand HBM segment, while TSMC has stolen all its major customers in contract chip manufacturing. Now, there is more bad news for Samsung's chip business.
According to a report from Nikkei Asia, Samsung has been forced to delay the completion of its semiconductor chip factory in Taylor, Texas, in the USA. It claims that the South Korean tech giant is struggling to find customers who would buy chips from its new plant. The company had planned to start chip manufacturing there in 2024, but that plan has now been postponed to 2026.
Samsung C&T, a construction arm of Samsung Group, has been tasked with building the plant, and according to its documents, the construction was 91.8% complete by March 2025 and that completion could happen by October. However, Samsung is reportedly not in a hurry to install chip manufacturing equipment there unless it gets customers for chips that can be made there. It is perfectly happy to make chips for existing customers at another plant it has in Austin, Texas.
The South Korean firm initially wanted to make 4nm chips at its plant in Taylor, but later revised it to 2nm chips. Analysts say Samsung's chip-making division is struggling with yield for its advanced process nodes like 2nm and 3nm. Yield is the ratio of chips that pass the optimal performance testing to the total number of chips fabricated.
In comparison, TSMC has already secured customers like Amazon, AMD, Google, and Nvidia for its chip plant in Arizona, USA. It has also announced an investment of another $100 billion earlier this year for advanced chip production and packaging.
Samsung said it will spend $37 billion more on its plant in Taylor, and it received $4.7 billion grants from the US government late last year under the CHIPS and Science Act. The company says it still plans to open its Taylor chip plant in 2026 and is improving the yield of its 2nm and sub-5nm process nodes.
Image Credits: Samsung
The post Samsung delays completion of Texas chip factory due to a huge problem appeared first on imeisource.
According to a report from Nikkei Asia, Samsung has been forced to delay the completion of its semiconductor chip factory in Taylor, Texas, in the USA. It claims that the South Korean tech giant is struggling to find customers who would buy chips from its new plant. The company had planned to start chip manufacturing there in 2024, but that plan has now been postponed to 2026.
Samsung C&T, a construction arm of Samsung Group, has been tasked with building the plant, and according to its documents, the construction was 91.8% complete by March 2025 and that completion could happen by October. However, Samsung is reportedly not in a hurry to install chip manufacturing equipment there unless it gets customers for chips that can be made there. It is perfectly happy to make chips for existing customers at another plant it has in Austin, Texas.
The South Korean firm initially wanted to make 4nm chips at its plant in Taylor, but later revised it to 2nm chips. Analysts say Samsung's chip-making division is struggling with yield for its advanced process nodes like 2nm and 3nm. Yield is the ratio of chips that pass the optimal performance testing to the total number of chips fabricated.
In comparison, TSMC has already secured customers like Amazon, AMD, Google, and Nvidia for its chip plant in Arizona, USA. It has also announced an investment of another $100 billion earlier this year for advanced chip production and packaging.
Samsung said it will spend $37 billion more on its plant in Taylor, and it received $4.7 billion grants from the US government late last year under the CHIPS and Science Act. The company says it still plans to open its Taylor chip plant in 2026 and is improving the yield of its 2nm and sub-5nm process nodes.
Image Credits: Samsung
The post Samsung delays completion of Texas chip factory due to a huge problem appeared first on imeisource.