Samsung's U.S. Chip Plant Delayed Due to Lack of Customers, Faces Cost and Technical Challenges

On July 4, sources revealed that Samsung Electronics has delayed the completion of its semiconductor plant in Taylor, Texas, and postponed equipment procurement due to difficulties finding customers. An anonymous insider stated, "The timeline was pushed back because there are no clients. Even if equipment arrives now, there’s little Samsung can do." Initially announced in 2021 with a $17 billion investment, the plant was slated for production in late 2024 but has faced repeated delays. Construction is now 99.6% complete, with operations expected to begin in 2026. Samsung later doubled its investment to $44 billion, supported by $4.745 billion in CHIPS Act subsidies, finalized in December 2023.

The semiconductor market is fiercely competitive, with oversupply posing significant challenges. Samsung struggles to secure major client orders, risking low utilization rates even after completion. CEO Lee Jae-yong previously acknowledged the Taylor plant’s hurdles. Additionally, Samsung’s planned 4nm chips no longer meet client demands, and adapting to 2nm technology would require costly upgrades. High U.S. operational costs, including expensive materials, skilled labor shortages, and prolonged environmental reviews, further strain the project. The delay disrupts Samsung’s global strategy and Biden’s domestic chip supply goals, while impacting suppliers like ASML. Samsung claims the project is on track for a 2026 launch but avoids detailing timelines or addressing customer acquisition challenges.