Samsung delays $44 billion Texas chip fab — sources say completion halted because 'there are no customers'
"The company is facing more than just yield issues, though. Recent
geopolitical changes have thrown a wrench in the global expansion of several semiconductor manufacturers, including TSMC and Samsung. Despite resilient growth in AI and data center markets, demand for consumer goods and commodities remains subdued.
"Although yields have since improved,
U.S. restrictions on high-end chip production for China have further weighed on the company, keeping its capacity utilization below the industry average," Trendforce analyst Joanne Chiao said to
Nikkei Asia.
President Trump’s announcement of far-reaching tariffs has caused widespread uncertainty, but it has greatly impacted consumer electronics and automobiles — key sectors that order the most chips. The Chinese market is continuously growing despite that, but the ongoing trade war between the East and the West is making it difficult, if not impossible, for Samsung to deliver to customers in the country.
Moreover, Beijing’s realization that its dependence on Western companies for its chip needs has led it to push for semiconductor self-sufficiency. Even though it still lags behind the U.S. in cutting-edge chips, the Chinese government’s policies are resulting in the arrival of several new players that
might make it the biggest provider of chip-making capacity by 2030."
Samsung needs chip buyers for it to start running its Texas chip fab.
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