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Samsung’s ambitious plans to invest $37 billion in the United States semiconductor industry have been put on hold due to a significant lack of demand for its products. The South Korean tech giant had initially planned to start production at its Texas-based chip factory, dubbed Taylor, by 2024. However, recent reports indicate that this timeline has now been pushed back to 2026.
According to insiders close to the matter, Samsung is facing two major hurdles in justifying the deployment of high-end production tools at the site. Firstly, there is weak demand for its target process nodes, which are used to create logic chips for mobile devices and other AI applications. This absence of interest from potential buyers has led to a drastic decrease in orders and sales.
The second challenge Samsung is grappling with is the shift in market needs that have rendered its proposed technologies no longer relevant. The company had planned to establish itself as a direct competitor to Taiwan-based TSMC, which currently holds nearly 68% of the global contract chipmaking market. However, due to the absence of demand and changing market trends, Samsung has decided to hold off on installing critical machinery at the Taylor site.
The decision to postpone the project comes amid broader economic pressures and geopolitical shifts that are further complicating matters for the tech giant. The global semiconductor industry continues to struggle with sluggish recovery in sectors such as consumer electronics, smartphones, and automotive. China’s push for self-sufficiency in the manufacturing sector is also putting pressure on Samsung to adapt to changing market dynamics.
The company’s commitment to U.S. manufacturing remains firm, despite this setback. Local Texas officials and federal policymakers are still backing the project, hoping it will become a central pillar of America’s reshaped semiconductor landscape.
Source: coincentral.com
