The move might deal another blow to the Biden administration’s ambition to increase US semiconductor supplies. PHOTO: REUTERS
SEOUL - Samsung Electronics has delayed mass production plans at its new chip plant in Taylor, Texas, the Seoul Economic Daily said, potentially dealing another blow to the Biden administration’s ambition to increase domestic semiconductor supplies.
Mass production at the upcoming US$17 billion (S$22.5 billion) semiconductor fabrication plant, or fab, would begin in 2025, the newspaper reported, citing a speech by president Choi Si-young of Samsung’s foundry business at an industry event in San Francisco.
Samsung previously said the factory would start production in the second half of 2024 when it announced the investment in 2021. A spokesperson said the company cannot confirm the mass production schedule right now.
The report followed an earlier decision by Samsung’s bigger rival Taiwan Semiconductor Manufacturing Company to postpone production at its new Arizona fab to 2025 from 2024 due to a shortage of experienced construction workers and machine installation technicians.
Any delay at the US sites operated by the world’s two leading contract chipmakers would be a setback to US President Joe Biden’s grand plan to boost chip production on American soil to avoid future supply disruptions like the 2021 shortage that cost companies hundreds of billions in revenue.
Revisions to their plans would mean their new plants, worth tens of billions of dollars, may come online only after the US presidential election in 2024.
US environmental permit issues and the Biden administration’s slowness in delivering financial support have been plaguing domestic chip projects.
Samsung delays chip production at new US factory to 2025, report says
The move might deal another blow to the Biden administration’s ambition to increase US semiconductor supplies. Read more at straitstimes.com. Read more at straitstimes.com.
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