[Report] Samsung suspends US semiconductor facility expansion

Samsung has reportedly stalled semiconductor factory expansion in South Korea and the US. A new report suggests that the company has suspended construction and contract plans for Pyeongtaek P4 and Taylor Plant 2.

DigitalDaily reports that Samsung has suspended the construction and ordering of P4 in  Pyeongtaek and the Taylor Plant 2 in Texas, US. The company is reportedly looking to adopt a more conservative approach to semiconductor investment.

The report mentions that the South Korean tech giant informed multiple suppliers that major orders for semiconductor equipment, facilities, and infrastructure for the Pyeongtaek P4 and Taylor Plant 2 factories have been postponed.

Samsung hasn’t officially confirmed the suspension of construction and contract plans. The postponement confirmation may arrive sooner or later. The production lines aimed to start construction in the second half of this year.

The company planned to invest $44 billion to build two semiconductor factories and an advanced packaging R&D center in Taylor. It was set to receive a $6.4 billion subsidy from the US government under the CHIPS and Science Act.

Samsung is facing yield issues with its 3nm and 2nm process technologies. Google has also switched to TSMC for future Tensor chipsets. Qualcomm has already opted for TSMC, widening Samsung Foundry’s gap with TSMC, further.