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.

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(Photo credit: Samsung)

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)