Recently, Samsung Electronics announced that it will postpone the mass production plan of its new chip factory in Texas until 2025, which has attracted widespread attention in the industry. This also means that after TSMC, another semiconductor giant has also fallen into the dilemma of delaying production plans, highlighting the lag of many large companies in the semiconductor field.
It is reported that Choi Siyoung, head of Samsung's foundry business, revealed at an industry event in San Francisco that the $17 billion factory will start mass production in 2025. However, this is compared to Samsung's plans announced in 2021, which was originally scheduled to start production in the second half of 2024. A company spokesperson said it was not possible to confirm production plans at this time.
The decision is similar to that of TSMC, which has already announced that it will postpone production at its new U.S. plant until 2025 due to a lack of experienced construction workers and machine installation technicians. The postponement of production plans by the two semiconductor giants will have an impact on the Biden administration's ambitions to increase local chip production.
Bloomberg noted that the delay in the production plans of the two companies at their factories in the United States could frustrate President Biden's goal of increasing the domestic chip production plan. The Biden administration has been working to increase support for the semiconductor industry, but plans have been hampered by environmental permitting issues and slow progress in financial support.
It was also reported that the Biden administration could provide up to $4 billion in subsidies to Intel, raising concerns in South Korea that U.S. companies are prioritizing subsidies over Samsung Electronics. South Korea says U.S. subsidies for foreign investment are too conditional. Lee Chang-yang, Minister of Trade, Industry and Energy, said that the subsidy conditions are completely different from the subsidies usually provided for foreign investment, which may lead to business risks for enterprises.
Overall, the postponement of production plans at Samsung and TSMC's new factories in the U.S. highlights the lag of several large companies in the semiconductor space, which poses a certain challenge to the Biden administration's semiconductor self-sufficiency plan. As the criticality of semiconductors in the global industry increases, competition in this field is also intensifying, and the game between companies and governments in various countries will continue to ferment.