Samsung delays production at Taylor factory to 2025, reports say
TAYLOR, Texas (KXAN) — Samsung’s new chip manufacturing plant in Texas has delayed the start of production to 2025, according to reports.
Bloomberg, citing the Seoul Economic Daily, a business newspaper in South Korea, reported Samsung has delayed mass production plans at its new chip plant in Taylor, Texas, a city about 50 miles northeast of Austin.
Bloomberg wrote mass production at the factory would begin in 2025, citing the newspaper, which referenced a speech by President Choi Siyoung of Samsung’s foundry business at an industry event in San Francisco.
A Samsung spokesperson told KXAN, “The Samsung Taylor fab is on target to be operational by the end of 2024. We cannot comment on timing for mass production.”
Samsung previously said the factory would start production in the second half of 2024 when it announced the investment in 2021. The company’s website still notes the goal of launching operations in 2024.
A semiconductor expert’s insight
Texas State University Senior Instructor of Statistics Robert Wright has 17 years of experience in the semiconductor industry.
“Anything that’s electronic has to have computer chips in it,” Wright said.
Wright said a delay in production could be because of the supply and demand for chips.
“Christmas season just occurred. Maybe lots of chips were sold in products that we all bought,” Wright said. “Maybe they’re looking at now there’s going to be maybe a little bit of a downturn.”
Changes in demand aren’t uncommon in this industry, according to Wright.
“The downturn is very normal,” Wright said. “It’s a very cyclical industry.”
Ultimately, he said Samsung will create the best production timeline for its company.
“They are going to make the right decision so that those chips are being manufactured when they need them,” Wright said.
KXAN reached out to the City of Taylor to get a response but has not heard back yet.
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