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Title: Samsung’s US Semiconductor Ambitions Hit Roadblock as Market Conditions Fail to Match Expectations
Samsung Electronics has been forced to revise its plans for a significant expansion in the US semiconductor market, citing lack of demand and a disconnect between their proposed technologies and current market needs. The move comes after the company invested heavily in a $37 billion push into U.S. manufacturing, which was designed to create 2,000 direct jobs and support thousands more.
Initially, the project aimed to commence production at its Taylor, Texas facility in 2024 but is now expected to start only in 2026. The delay casts doubt on Samsung’s strategy of bolstering its presence in the US market amid a challenging environment for the industry. The company had planned to invest heavily in AI-related chip development and the production of chips tailored to mobile devices, 5G applications, and high-performance computing.
However, internal struggles may also be contributing factors in the delay, as Samsung reassesses its approach following an announcement in 2021 that it would dedicate significant resources towards US manufacturing. The shift in global chip market dynamics has further complicated matters for the South Korean tech giant, which had been relying on a $4.7 billion grant awarded under the Biden administration’s CHIPS and Science Act.
The recent figures from TrendForce reveal that Taiwan-based TSMC dominates the contract chipmaking market with nearly 68% share, while Samsung lags behind with an insignificant percentage. This shift in market dynamics means Samsung needs to reevaluate its approach to align their technologies with current demand.
Source: coincentral.com
