[News] U.S. Official Denies Samsung Layoff Rumors at Taylor, Describing it as Routine Rotations

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As rumors indicate that Samsung plans to withdraw personnel from its USD 40 billion Taylor, Texas plant, a recent report by The Korea Herald dismisses the speculation. Citing a local economic development chief, the report notes that construction is on track to be finished by mid-2025, and the withdrawal of employees are simply routine rotations.

Quoting Dave Porter, executive director at the Williamson County Economic Development Partnership, the report suggests that Samsung regularly rotates its employees every two years so that they can return to Korea, while another group of workforce has taken their place.

Samsung’s initial projection, announced in 2021 when the investment plan was disclosed, had anticipated the Taylor plant to start its mass production of 4nm in the second half of 2024. But afterwards, the tech giant has reportedly postponed the schedule to 2025, as a previous report by U.S. local media MySA noted that the plant may not begin operations until 2026.

The postponement, according to The Korea Herald, may be primarily attributed to a market downturn.

Regarding the node featured in Samsung’s Taylor facility, another report by Wccftech notes that it was initially expected to produce chips with advanced processes below the 4nm node. The company is reportedly mulling to update its fabrication capabilities in the Taylor fab from 4nm to 2nm, while low yields remain a major obstacle.

Despite the scenario, Porter notes that the construction of Samsung’s Taylor plant is moving ahead rapidly, with around 6,000 workers on-site daily. He estimates that the first fabrication plant will be completed between early and mid-2025, with production kicking off sometime between early and mid-2026, in line with Samsung’s forecast.

According to the report, Samsung expects around 150 suppliers to relocate to Texas to support the new fab’s operations. However, for now, many of the suppliers have scaled back their preparations since early this year, following Samsung’s adjusted timeline.

South Korean-based engineering company Hanyang ENG and semiconductor material supplier Soulbrain are among Samsung’s key suppliers in Taylor, Texas, the report indicates.

Read more

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(Photo credit: Samsung)