US's Domestic Semiconductor Ambitions Take a Hit as Samsung Shelves Production Plans

Samsung Electronics Co SSNLF has shelved mass production plans at its new chip plant in Taylor, Texas, posing a bummer for the U.S.'s semiconductor dreams.

Mass production at Samsung's impending $17 billion fab would begin in 2025. 

Bloomberg cites a local daily covering President Choi Siyoung of Samsung's foundry business at an industry event in San Francisco.

The Taiwan Semiconductor Manufacturing Co TSM rival had previously shared its production plans in the second half of 2024.

Also Read: ASML Stock Drops As Key Supplier TSMC Reportedly Postpone Deliveries Amidst Industry Demand Concerns

Recent reports indicated TSMC's plans to defer production at its new Arizona fab to 2025 from 2024 due to a crisis of experienced construction workers and machine installation technicians.

Any delay at the U.S. sites operated by the leading contract chipmakers would deter the U.S.'s domestic chip production ambitions.

TSMC's and Samsung's deterrents imply their new plants, worth tens of billions of dollars, might fructify after the 2024 U.S. presidential election.

The domestic chip project remains vulnerable to the U.S.'s environmental permit issues and the administration's delay in delivering financial support.

More than a year after the U.S. inked the Chips Act into law, promising $100 billion in support to new semiconductor plants in the U.S., the government has granted only $35 million to the American subsidiary of British aerospace firm BAE Systems Plc.

Also Read: Tech Giant Samsung Invests in Japanese Chip Packaging, Boosting Global Semiconductor Race

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