Samsung postponed the chip plant of Rs 3,750 billion, know what is the reason

Updated: 04-07-2025, 06.03 AM

What is news?

Samsung is now delaying the launch of its new chip plant being built in Texas, USA.
Nikkei Asia According to the report, the company had to take this decision due to the shortage of customers and the changing market demand. The work of this plant costing $ 44 billion (about Rs 3,750 billion) was completed by March 2024, but now its inauguration has been postponed till October 2026.

Reason

Customers not getting and technical change is a big reason

The Taylor Fab first planned to make 4Nm process chips, but now this technique is considered old and its demand is also very low. Samsung is now considering 2Nm chips, but it will require a lot of money and time. The company is not only looking for customers, but it will also have to fully update the Fab, which remains a major challenge at this time.

Demand

Local demand weak

While Taiwan Semiconductor Manufacturing Company (TSMC) Fabs have already been booked at full capacity, Samsung has not yet received strong orders. The TSMC is making 4Nm chips for American customers and its market share is around 68 percent, while Samsung is in second place with just 7.7 percent. Due to low demand, the return of investment is becoming difficult for Samsung.

Challenges

Challenges will remain in future also

Samsung says that it is planning to open the fab by 2026, but no confirmed date has been fixed yet. Experts believe that if Samsung does not start this plant, it is at risk of lagging behind TSMC and can also sink an investment of billions of dollars. In addition, American policies, increasing stress from China and technical challenges can also create difficulties for the company in future.