Samsung Electronics has reportedly delayed construction at its recently announced chip fab in Taylor, Texas, while it mulls over plans to upgrade the foundry process at the facility from 4nm to 2nm.
According to a report in Korean news outlet ETnews, a final decision will be made in the third quarter of this year.
In April 2024, Samsung received $6.4 billion in direct funding under the US Chips and Science Act to support the company’s planned $40bn investment in a semiconductor cluster split between two cities in central Texas: Taylor and Austin.
At the time, the White House said the Taylor investment would include “two leading-edge logic foundry fabs focused on mass production of 4nm and 2nm process technologies,” however the new ETnews report implies that Samsung is looking to forgo the production of 4nm chips at the fab altogether.
The upgrade is likely being considered by Samsung to allow the company to compete more directly with TSMC and Intel, both of which have already announced plans to start producing 2nm-class process technology in the US before the end of the decade.
The Taylor fabs were expected to be up and running by 2026 however ETnews reported that orders for equipment at the site have now been delayed. If the upgrade were to go ahead, it's unclear how this might impact the proposed timeline.
The move comes a month after Samsung replaced the CEO of its Device Solutions Division, appointing Young Hyun Jun to lead its semiconductor business and to “strengthen its competitiveness amid an uncertain global business environment.”
When the appointment was made, Samsung said Jun is “expected to focus on finding new growth opportunities based on his experience leading the semiconductor business.”
While the company has seen its operating profits explode in 2024 as a result of a growing need and increase in the price of DRAM and NAND flash memory chips, its SF3E 3nm chips weren’t particularly successful.
On June 7, the National Samsung Electronics Union (NSEU) staged its first-ever strike following a breakdown in negotiations over pay and benefits, with the union’s strike declaration also claiming that the company was shifting the blame for poor business performance onto employees, even when it had resulted from “obvious management failures.”
Earlier this month, Samsung unveiled two new chip nodes, including the SF2Z. Slated to be available from 2027, the 2F2Z will be made using the company’s 2nm process and incorporate backside power delivery network technology to eliminate bottlenecks between the power and signal lines, while also reducing voltage drop.
