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Samsung’s ambitious plans for a $37 billion US semiconductor push have hit a roadblock due to lack of demand in the American market. The South Korean tech giant had initially planned to start production at its Texas-based chip factory in 2024, but sources close to the matter reveal that the facility will now come online in 2026.
Despite being awarded a whopping $4.7 billion grant from the Biden administration’s CHIPS and Science Act, Samsung is facing a two-year delay due to poor demand for its target process nodes. This significant setback has put a dent in the company’s plans to become a major player in the global chipmaking market.
Samsung had envisioned its Taylor plant as a cutting-edge semiconductor hub producing logic chips for mobile devices, artificial intelligence, 5G, and high-performance computing applications. However, it appears that since announcing the project in 2021, market needs have shifted, and Samsung’s proposed technologies no longer align with what US clients are currently seeking.
The company is reportedly reassessing its approach to the semiconductor market, taking a more cautious stance as global chip recovery remains sluggish across sectors such as consumer electronics, smartphones, and automotive. The delay has left many wondering if this setback will have far-reaching implications for Samsung’s future in the US market.
Despite these challenges, Samsung maintains that it is committed to U.S. manufacturing and continues to seek local partnerships and investments.
Source: coincentral.com
