Samsung’s semiconductor business stalls in Texas
Samsung’s plans to mass-produce advanced semiconductors at its Texas fab have hit major obstacles, pushing the start-up date to after 2026. The delay is the result of a combination of legal, administrative and financial issues.
Current Issues
Subsidy Delays: Samsung is experiencing delays in receiving subsidies from the U.S. government for its semiconductor factory in Texas. These financial difficulties are complicating the project’s progress and increasing construction costs. Rising Construction Costs: The project’s costs are increasing, increasing financial strain and leading to delays in completion.
Legal and administrative issues
Worker injury lawsuit: A local construction worker who was seriously injured last month has filed a $1 million lawsuit against Samsung. The worker claims Samsung was aware of the potential risks but failed to provide proper training and supervision. Company response: Samsung says the injured worker was a subcontractor’s site supervisor. The company is investigating the situation and is concerned about the worker’s recovery.
Project timeline and progress
Construction Milestones: The groundbreaking ceremony for the Taylor Factory is expected to take place in the first half of 2022. As of the end of last year, construction progress was reported to be just 59.7%. Technology Transition: Due to delays, there are rumors that Samsung may switch the unit’s technology from 4nm to 2nm. This potential change reflects the evolving nature of semiconductor technology and the impact of project delays.
