Smartphone giant Samsung suddenly came to the agenda with a critical decision. The company announced that it has halted the construction of its P4 factory in Pyeongtaek, South Korea and its second semiconductor factory in Taylor, USA. So, what is behind this development?

Samsung halted construction of semiconductor factories in the US and South Korea!

According to the latest news, Samsung is said to be affected by fluctuations in the semiconductor market. The chip industry, which experienced a huge demand boom, especially during the pandemic period, has recently faced lower demand than expected. Considering this situation, Samsung decided to review its investment strategy with a more cautious approach.

In fact, the company was planning to make a major investment in Taylor, USA. Samsung, which aims to build two semiconductor factories and an advanced packaging R&D center with a total budget of 44 billion dollars, had received 6.4 billion dollars worth of support from the US government for these projects. However, these plans have been shelved for now due to the uncertainty of market conditions.

It seems that not only Samsung, but also the semiconductor industry as a whole is taking a cautious stance. The company may revisit its strategy and return to these projects in the coming period, but for now, the drop in demand in the wake of the chip crisis has all industry players thinking.

Let’s see how this slowdown in the semiconductor industry will play out in the long run. What do you think about this? Let us know in the comments section below.