Navigation
Search
|
Samsung Delays $44 Billion Texas Chip Fab Because 'There Are No Customers'
Friday July 4, 2025. 02:10 AM , from Slashdot
![]() The chip maker started construction on the Taylor fab in 2022, with an initial investment of $17 billion. By 2024, the company decided to double this to $44 billion, with the addition of another advanced fab and expanded R&D operations. This move is supported by a $6.6-billion CHIPS Act subsidy, which was finalized in December last year, despite multiple delays and setbacks. Samsung C&T, the primary contractor for the Taylor fab, states that construction of the site is progressing. Documents from the company show that the site is almost 92% complete as of March 2024. Work on the site was originally scheduled to finish the following month, but regulatory filings indicate that this was moved to October. No reason was given for the delay, but multiple sources indicate that it occurred due to a lack of demand. It was initially planned for the Taylor Fab to produce chips for the 4nm process node, but this has since been upgraded to 2nm, to compete with TSMC and Intel. A supply chain executive told the publication that there is little demand for the originally planned 4nm process node at the site. 'Local demand for chips isn't particularly strong, and the process nodes Samsung planned several years ago no longer meet with current customer needs,' the executive said to Nikkei Asia. 'However, overhauling the plant would be a major and costly undertaking, so the company is adopting a wait-and-see approach for now.' Although it has already declared its intention to upgrade the site to manufacture the 2nm process node, that is a resource-intensive task in terms of time, effort, and money. Despite the lack of customers, Samsung says it will proceed with opening the Taylor Fab by 2026 -- a necessary move to qualify for CHIPS Act funding and avoid falling behind competitors like TSMC. Delaying further could jeopardize billions already invested in the project. Read more of this story at Slashdot.
https://hardware.slashdot.org/story/25/07/03/2034239/samsung-delays-44-billion-texas-chip-fab-becaus...
Related News |
25 sources
Current Date
Jul, Fri 4 - 19:26 CEST
|