Samsung Delays Texas Fab, Targets 2nm by 2026

Recent reports from the semiconductor industry have shed light on Samsung's ambitious plans for its future chip manufacturing processes. The paper indicated that a crucial decision regarding the transition to the cutting-edge 2nm technology is expected to be finalized in the third quarter of 2024.

In a significant move, Samsung had announced its intention to invest a staggering US$17 billion in constructing its initial Taylor fab, which would mark its second facility in Texas. However, industry insiders suggest that the budget for this project may have escalated to approximately US$20 billion since the initial announcement in November 2021. The new fab was slated to commence production utilizing Samsung's 4nm node by the conclusion of 2024.

Despite these grand plans, a recent report from ETnews has indicated that Samsung is currently holding off on placing orders for chipmaking equipment. This delay is attributed to the pending decision on whether the company should aim to kickstart its operations directly with the advanced 2nm technology.

One of the key factors influencing Samsung's deliberation could be the rapid adoption of artificial intelligence (AI) technologies and the escalating demand for cutting-edge chips to power AI applications. Notably, rival company TSMC has already begun manufacturing leading-edge devices on the 3nm process for industry leader Nvidia, underscoring the urgency for Samsung to stay competitive.

Furthermore, the competitive landscape in the semiconductor industry is intensifying. Intel is gearing up to introduce its 20A and 18A processes (equivalent to 2nm and 1.8nm) at its facilities in Arizona and Ohio in 2024. On the other hand, TSMC is on track to roll out its 2nm process in the first half of 2025, while Rapidus has outlined plans to commence chip production using a 2nm process licensed from IBM on a pilot line by April 2025, with mass production slated for 2027.