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Samsung has denied rumors that its Taylor plant timeline will be pushed to 2027, but concerns are growing over the mounting hurdles in its U.S. investment. According to the Chosun Daily, the company has been reluctant to bring in key equipment like EUV machines to the Taylor facility — a move that could result in hefty import tariffs down the line.
KXAN suggests that Samsung still aims to start operations by the end of 2026. As noted by the Chosun Daily, Samsung’s new fab in Taylor, Texas, is 99.6% complete. However, unlike the usual pace, equipment hasn’t been brought in yet, reportedly due to Samsung’s hesitation in placing orders.
This suggests Samsung’s Taylor plant may see underwhelming revenue depending on orders and market trends — and to make matters worse, the chipmaker could be hit with tariffs of at least 25% when bringing in chipmaking tools, the report warns.
EUV Subject to High Tariffs
According to sources cited by the Chosun Daily, equipment is normally moved in within 3 to 6 months after construction wraps up. But with Samsung repeatedly delaying the process, the chances of getting hit with high tariffs when they finally import the gear are expected to be pretty high.
As highlighted in the report, one extreme ultraviolet (EUV) machine from ASML can cost up to 500 billion won (nearly USD 350 million per unit) — with potential tariffs running into the hundreds of millions.
Talent Recruiting: Another Headache
Meanwhile, as per the report, with no major customers locked in, Samsung’s foundry division has been bleeding money, posting an estimated 2 trillion won in operating losses for 2023 — after a jaw-dropping 4 trillion won loss in 2024. The U.S. plant, with its higher costs, is likely facing an even tougher road ahead, the report adds.
On top of that, staffing is another headache. The report indicates that it would be tough to send skilled workers to the U.S., so Samsung will likely face steep costs recruiting talent locally.
TSMC Faces Similar Struggles with Overseas Fabs
Samsung isn’t alone in grappling with the challenges of running overseas fabs — even Taiwanese foundry giant TSMC is in the same boat, facing similar hurdles abroad.
According to its 2024 annual report, TSMC’s Arizona facility posted a loss of nearly NT$14.3 billion last year, making it the company’s most costly overseas site. Meanwhile, TSMC’s Japanese subsidiary, JASM, posted a loss of NT$4.375 billion in 2024—the largest since TSMC entered the Japanese market—with cumulative losses over the past three years reaching NT$7.933 billion.
Notably, for its new plants in Kumamoto and Arizona, TSMC expects a 2–3% margin hit this year, with the impact gradually widening. During early ramp-up, gross margin dilution is projected at 2–3% annually, increasing to 3-4% in later stages over the next five years.
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(Photo credit: Samsung)
