[News] Samsung Reportedly Suspends Construction and Contract Plans for Pyeongtaek P4 and Taylor Plant 2

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Earlier this month, reports emerged that Samsung Electronics was cutting up to 30% of its overseas workforce, with Business Korea noting issues with its 2nm yield and the company’s decision to pull staff from its Taylor plant. Now, Digital Daily reports that Samsung has further delayed construction and orders for its Pyeongtaek Phase 4 (P4) facility and the second foundry plant in Taylor, Texas.

Citing semiconductor industry sources, Digital Daily revealed that Samsung recently notified key suppliers about the postponement of equipment and infrastructure orders for both facilities. While Samsung has not officially confirmed the construction timeline, insiders say both plants were originally slated to break ground in the second half of this year. The latest notifications, however, confirm delays.

Market speculation surrounding these projects has been rife. Digital Daily reported that some predict part of the P4 line, initially intended for foundry production, might be converted into memory production. Others suggest the expansion could be delayed altogether due to the downturn in memory semiconductor demand.

According to Digital Daily, the Pyeongtaek P4 line—designed as the world’s largest semiconductor production facility—was expected to handle both memory and foundry production. The facility is divided into four phases, with the first already operational. However, construction on phases 2-4, initially scheduled for this year, has been postponed, delaying related equipment and infrastructure orders as well.

Samsung’s foundry project in Taylor, Texas, is facing a similar situation. The company had planned to invest $44 billion to build two semiconductor plants and an advanced packaging R&D center. Under the CHIPS Act, Samsung was set to receive $6.4 billion in U.S. government subsidies.

Although construction on the first plant is underway after multiple delays, with completion targeted for 2026 and advanced sub-5nm processes in development, Digital Daily reported that the start of construction for the second plant, originally expected this year, has been postponed. As a result, related orders have also been delayed.

As reported by Digital Daily, a representative from Samsung Electronics stated that the company is unable to provide an official update on its production line operations, but it may adjust plant construction plans in response to fluctuations in demand.

(Photo credit: Samsung)