Samsung delays ASML chip equipment for Texas USA factory

Samsung halted chip equipment delivery from ASML for the Texas USA factory Reuters reports. The company is struggling from a broader slowdown in its contract chip manufacturing, leading it to reconsider equipment deliveries.

The semiconductor production business is dominated by Taiwan’s TSMC. Samsung has postponed Texas chip equipment delivery from ASML due to a lack of major customers for the project. Delay in US CHIPS subsidy is also hurting Samsung’s project.

Samsung Foundry’s 3nm process seemingly failed to achieve a production-level yield rate. Other process nodes are also affected, with the Foundry division entering in crisis as no major production client is left for business expansion.

The report states that Samsung’s move to halt shipment covers advanced extreme ultraviolet (EUV) lithography machines. This is a crucial machinery in a semiconductor factory that is essential for producing cutting-edge chips.

Samsung has been facing multi-front challenges in its Texas plant. While subsidies are delayed, the construction rate continues to rise. The company has also faced a legal hurdle, with an employee injured during construction work.

The Korean tech giant planned to commence mass production this year. However, the new deadline to complete construction and kickstart production is pushed to 2026. The lack of major clients will further delay the mass production at Texas Fab.