It is reported that mass production of Samsung Electronics Co.'s new chip manufacturing facility. is being developed. Ltd. In Taylor, Texas, it was delayed by six months.
That appears to be a setback for President Joe Biden's administration's ambitious plans to boost domestic semiconductor manufacturing.
Bloomberg cited South Korean media as saying the $17 billion chipmaker will begin mass production in 2025. Samsung Foundry Chairman Choi Seung announced the postponement at an industry event in San Francisco, the report said.
The company previously expected mass production at the new plant to begin in the second half of 2024, but that will now be pushed back to 2025, according to the report. Taylor Place, which is more than a kilometer long, has enough space to accommodate ten factories in addition to the original one.
The factory's first production line is expected to produce four-nanometer semiconductors. Today, Taylor Plana's output is 5,000 wafers a month, about one-sixth of what Samsung's new 4nm foundry in Pyeongtaek, South Korea, can produce.
Deciding to delay mass production Taiwan Semiconductor Manufacturing Co., Samsung's main chipmaker competitor, said earlier it would delay production at its new Arizona plant until 2025 due to a shortage of construction workers and machine assembly technicians. As with Samsung, TSMC plans to bring its new factory fully online by 2024.
If true, the report would be a major setback for President Biden's ambitious plan to increase US chip production in 2021 to avoid supply disruptions similar to those that occurred at the height of the COVID-19 pandemic.
Business Korea later expanded on the original report, saying that Samsung was apparently concerned about the slow release of funds that the US government was supposed to provide through the Biden chip law. Under the CHIPES and Science Act, the government awards millions of dollars in grants to semiconductor companies that decide to build new facilities on US soil. But most of these grants have not yet been awarded, as only $35 million has been disbursed of the $52 billion promised.
Samsung to Intel's preferential treatment could be helpful. A Wall Street Journal report last month indicated that Intel could receive up to $4 billion in subsidies ahead of other chipmakers. Samsung is now lobbying politicians for a fairer distribution of funding, which Intel does not support. The Business Korea report added that the company made its first investment in Texas because it was confident that the CHIPS Act would be implemented.
Finally, Samsung continues to raise concerns about the state of the global economy. While the United States appears to have managed to avoid an official recession, other parts of the world are still struggling. As a result, Samsung continued to cut prices for random-access drives and solid-state drives, eroding the profitability of its chipmaking business.
Image: Samsung
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