Samsung’s semiconductor manufacturing facility in Taylor, Texas, could not start operating on the planned date. The opening of the factory, which was built with an investment of $ 44 billion, was postponed due to lack of customers and low demand. The South Korean technology giant has almost completed the physical construction of the factory, but the commercial conditions required for it to start production could not be met.

Samsung cancels the opening of the chip factory

The production technology to be used in the factory was planned to be 4nm, but this process lost its validity due to market needs. Samsung later started preparing to switch this line to the 2nm production process.

However, the transition process to 2nm technology involves high difficulties in terms of both time and cost. Although the company is ready to install production equipment, it cannot start production due to insufficient demand.

Samsung started the construction of the factory in 2022 with an investment of $ 17 billion. The investment amount was increased to $ 44 billion in 2024. This increase also included the decision to establish an additional advanced factory and R&D center.

The expansion was also financed with a $6.6 billion CHIPS Act subsidy from the US government. However, the project delays have also affected the factory’s construction schedule. The main contractor, Samsung C&T, reported that the project was 92% complete as of March 2024. Construction was scheduled to be completed in April, but official documents have postponed this date to October.

While Samsung has operated another semiconductor facility in Austin since 1996, opening the new factory in Taylor involves a much more complex process. This greenfield facility requires not only construction, but also the establishment of a supply chain, the procurement of the necessary manufacturing equipment, the availability of skilled labor, and ultimately the acquisition of customers for the chips to be produced.

In light of all these developments, Samsung is expected to have its Taylor manufacturing facility operational by 2026. However, the company has not yet given a firm date and has not made any official statements regarding the lack of customers or equipment installation.