Samsung Electronics is grappling with a customer shortage at its Texas semiconductor facility, forcing the South Korean chipmaker to delay equipment installation at the $17 billion plant originally scheduled to begin production in 2024.
The Taylor, Texas facility, now targeted for 2026 operations, sits 91.8% complete but remains largely empty of the sophisticated machinery needed for advanced chip manufacturing. Sources indicate Samsung has postponed deliveries of costly extreme ultraviolet lithography equipment from ASML, with each machine costing around $200 million.
The delays reflect Samsung’s broader strategic retreat in the foundry race. The company recently pushed back mass production of its 2-nanometer process by two years to 2029, abandoning its previous speed-focused approach for what executives call “substance and stability.” Samsung unveiled this revised roadmap at its July foundry forum, signaling a pivot toward mature processes rather than chasing cutting-edge nodes.
The strategic shift comes as Samsung’s foundry division hemorrhaged over 4 trillion won ($2.8 billion) in operating losses during 2024, while commanding just 8.2% market share against Taiwan Semiconductor Manufacturing Co.’s 67.1% dominance.
Despite some positive developments including a 2-nanometer project with Qualcomm and Nintendo Switch chip production, Samsung’s Texas gambit highlights the challenges facing non-TSMC players in the intensely competitive contract manufacturing space.
