Samsung’s Texas semiconductor fab, intended to be a key facility for the mass production of advanced processes below 4nm, has been delayed due to ongoing challenges with 2nm chip yields. The company has withdrawn personnel from its $17 billion Taylor, Texas plant, which was designed to be a hub for mass production of advanced processes below 4nm.
Samsung’s foundry yield for processes below 3nm currently stands below 50 percent, with its Gate-All-Around (GAA) technology yield reportedly as low as 10 to 20 percent. In contrast, TSMC’s advanced process yields stand around 60 to 70 percent. This performance gap has widened, with TSMC holding a significant market share, while Samsung’s share has dropped.
TSMC’s Arizona facility has made significant progress, with recent trial production yielding results comparable to those of its established plants in Taiwan. The facility is on track to begin production at its first fab in the first half of 2025.
Samsung is rethinking its strategy and has kept only a skeleton crew at the Taylor plant. The company has a preliminary agreement with the U.S. government for subsidies under the CHIPS Act, which is now at risk. Samsung’s challenges extend beyond technical issues, with pervasive bureaucracy, slow decision-making, and low compensation contributing to its decline in foundry competitiveness.
A semiconductor professor told Business Korea that Samsung needs a fundamental overhaul of its management system. The company’s delayed investment timing and slow decision-making have hindered its ability to compete in the advanced chip manufacturing space. Samsung’s recent struggles are particularly striking, given its history in semiconductor manufacturing.