Samsung has postponed the delivery of new ASML machines for its chip factory in Texas, possibly because of the deteriorating international market for foundry operations.
The South Korean company has put on hold several investments in the new chip factory in Taylor, Texas. According to Reuters sources, staff is also being sent home.
ASML is also affected by the postponement of investments. Samsung has delayed the delivery of previously ordered high-end EUV machines. These machines, which should have been delivered earlier this year, have not yet been shipped from the Veldhoven plant. It’s unclear when delivery will now take place.
The machines cost about $200 million each. Samsung has not ordered many machines for the factory and has not made any payment arrangements for them.
Worsening market conditions
ASML already reported in its recent quarterly earnings report that the outlook for 2025 is less favorable due in part to worse market conditions outside the AI boom and delays in chip factory construction. ASML did not specifically identify which customers are slowing plant construction, but Samsung appears to be one of them.
In addition, ASML notes that the foundry chip market is experiencing problems. Customers are reportedly delaying the manufacture of high-end chips and building fewer factories than planned.
More delays in foundry operations
Samsung has invested $17 billion in the new plant in Texas, where it plans to produce chips for third parties. With this, it aims to compete with compatriot SK Hynix, which is ramping up its production of high-end chips, and with Taiwan’s TSMC, the market leader in chip production for third parties.
However, the United States plant has been struggling with delays for some time. Originally scheduled to begin production this year, it has been delayed to 2026. Just last month, Samsung confirmed to Reuters that there were “challenges” surrounding the plant but that production would still start in 2026.
In addition to the delays in Texas, Samsung is also experiencing problems in its broader foundry operations. Sources indicate that factories in South Korea are also experiencing problems, and investments in two other foundry production lines have been delayed.
Both Samsung and ASML refuse to comment on the situation surrounding the delivery of the EUV machines. Samsung only states that sending personnel home is a regular rotation.
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