Samsung Electronics' ambitious plan to establish a semiconductor factory in Taylor, Texas has encountered some obstacles, delaying completion time and raising concerns about its future. Samsung Electronics started construction on the Taylor factory in the first half of 2022, but as of the end of last year, the progress was only 59.7%.
Recently, US media reported that according to industry sources, it is difficult for the factory to start large-scale production of advanced semiconductors before the originally planned 2026.
Samsung Electronics announced during the first quarter earnings conference call this year that it will postpone the mass production of its Taylor 1 factory until after 2026, due to rising construction costs and delayed government subsidies. In April of this year, the US government decided to provide a $6.4 billion subsidy to Samsung Electronics, but so far no actual payment has been made.
To make matters worse, in August of this year, a local construction worker working in sheet metal at the Taylor factory was seriously injured. Due to a pipeline structure falling from a forklift, the worker suffered fractures to the head, ribs, and leg bones. The worker has filed a compensation claim of $1 million against Samsung Electronics. The company stated, "The worker is the on-site supervisor of a subcontractor involved in the construction of the Taylor factory. We are reviewing the details of the compensation claim and hope he recovers soon
The worker claimed in the lawsuit that Samsung Electronics was aware of the problems and risks in the factory, but failed to provide appropriate training and management. This incident highlights the legal and safety challenges that large-scale construction projects often face.
Samsung Electronics plans to invest $44 billion to build two semiconductor factories and an advanced packaging research and development center in Taylor, Texas, USA. However, the delay in government subsidies and the rise in construction costs have seriously affected the progress of the project. Some people speculate that Samsung may shift the originally planned 4nm process at Taylor Plant 1 to a 2nm process, which could make the project more complex.
The semiconductor industry is an important component of modern electronic products and is crucial for technological progress and economic growth. The COVID-19 has exacerbated the global semiconductor shortage, prompting people to invest heavily in semiconductor manufacturing capacity. The US government has been providing significant subsidies to encourage domestic semiconductor manufacturing in order to reduce dependence on foreign suppliers and enhance national security.
However, recruiting professional workers remains a major challenge for Taylor factory. The labor market for specialized skills in semiconductor manufacturing in the United States is fiercely competitive, with companies such as Samsung, TSMC, and Intel competing for limited skilled workers. This competition may lead to project delays and increased costs.
The current situation of the Taylor factory project is still uncertain, and the production time is expected to be postponed until after 2026. The semiconductor industry expects that the competition for talent among global companies will intensify, which may further affect the progress of the project. As Samsung Electronics addresses these challenges, the outcome of the compensation lawsuit and the solution for subsidy payments will become key factors determining the future of the Taylor factory.
