It is reported that Samsung Electronics' Texas factory will be delayed in completion due to weak demand

According to foreign media reports, South Korea's Samsung Electronics (005930.KS) will delay the completion of its semiconductor factory in Texas, USA, due to unsatisfactory order conditions.

The company has stated that it will invest over $37 billion in Texas over the next few years and received up to $4.7 billion in subsidies from the previous Biden administration under the CHIPS and Science Act last December.

A chip supply chain executive familiar with the situation told Nikkei Asia that Samsung already has a chip manufacturing plant in Austin, Texas, but is not in a hurry to install chip manufacturing equipment in the new plant. The executive pointed out that local demand for chips is not particularly strong, and the process nodes planned by Samsung a few years ago can no longer meet current customer needs. However, a complete overhaul of the factory would be a significant and costly project, so the company is currently taking a wait-and-see approach