[News] Samsung Reportedly Delays Texas Fab Launch Amid Client Shortage

According to Tom’s Hardware, citing Nikkei, Samsung is reportedly postponing the launch of its Taylor, Texas fab primarily due to difficulties securing customers for its chip output. The report notes that even if the necessary equipment is installed at the facility, production cannot begin without sufficient demand.

As noted by Nikkei, documents from Samsung C&T—the construction arm of Samsung Electronics overseeing the Taylor fab—show that construction was 91.8% complete as of March. Although the project was initially slated for completion in April 2024, a filing submitted to South Korea’s financial regulator in May indicates that the construction deadline has been pushed to the end of October 2025, as the report highlights.

Although Samsung has not officially disclosed the reason for the delay, sources cited in the report suggest it stems from weak demand. One contributing factor, the report notes, is that Samsung originally planned to produce 4nm chips at the facility. Supply chain sources cited by Nikkei indicate that, after multiple delays, the originally planned process no longer aligns with current customer needs.

Samsung has since announced plans to upgrade the facility to support 2nm production in an effort to stay competitive. For this 2nm process, the company has secured some domestic firms and a Japanese AI chip design company as customers. Still, according to ZDNet, Samsung has yet to land major global tech clients—unlike its key rival, TSMC.

Despite these challenges, Samsung still plans to open the Taylor fab by 2026, according to Nikkei. However, as Nikkei notes, the company has not provided a detailed timeline for the launch or addressed questions about equipment installation and the current lack of customers.

Samsung’s Foundry Momentum Slows Amid Global Headwinds

Samsung’s pause in Texas comes amid broader global economic uncertainty. According to TrendForce, Samsung Foundry has struggled with unstable yields and the loss of customer orders. While yields have reportedly improved, TrendForce notes that U.S. restrictions on advanced chip production for China continue to weigh on the company, keeping its capacity utilization below the industry average.

TrendForce states that the Taylor plant could begin limited production if subsidies and tax incentives are secured. However, any meaningful scale-up will depend on the success of Samsung’s efforts to attract customers, as cited by Tom’s Hardware.

For 1Q25 foundry revenue, TrendForce points out that TSMC maintained a dominant 67.6% market share, while Samsung remained in second place, with its share dipping slightly to 7.7%.

Read more

• [News] Samsung Reportedly Resumes Cleanroom Work at Taylor in Q2; 2nm Tool Move-In Targeted for 2026
• [News] Taylor Reportedly Slashes Incentives for Samsung Plant Amid Delays, Sets New Targets

(Photo credit: Samsung)