Samsung's Pyeongtaek P4/P5 chip factory postponed to 2026, prioritizing the construction of the Taylor plant in Texas
Samsung Electronics had previously decided to suspend the construction of its second phase wafer foundry production line at the Pyeongtaek P4 factory. Recent reports indicate that the construction of Samsung Pyeongtaek P4's second and fourth phase production lines, as well as the P5 factory, will be postponed until 2026. Currently, Samsung will focus on building a wafer fab in Taylor, Texas.
Samsung did not conduct the necessary financial review of the Pyeongtaek P5 factory by the end of July 2024, resulting in the postponement of the construction plans for both P5 and P4 factories. However, the P4 Phase I production line for NAND Flash is expected to start production in the near future, and the Phase III production line is currently under construction. It is expected that power and other equipment will be officially installed after the Mid Autumn Festival.
Samsung's original plan for the P4 factory was to first build a storage production line (Phase I), followed by a wafer foundry production line (Phase II). Subsequent plans include building another storage production line (Phase III) and a wafer foundry production line (Phase IV) to complete the P4 factory. However, due to difficulties in obtaining wafer foundry customers, the company has adjusted its plans and prioritized the storage production line.
Insiders revealed that the product lineup for the P4 Phase II production line is expected to be determined between January and February 2025, but the specific time has not yet been determined. There are currently no plans for the fourth phase production line. Although some reports suggest that the P5 factory may resume construction in January or February 2025, the project is more likely to be postponed until 2026.
The decision of whether Samsung's various production lines under construction will produce DRAM, NAND, or handle wafer foundry business has attracted people's attention. Some analyses suggest that Samsung is delaying the decision on what products to produce as much as possible, so that the company can operate flexibly according to market conditions. This method may help alleviate fluctuations in the semiconductor market and enhance profitability.
Industry insiders pointed out that while Samsung is adjusting the pace of Pyeongtaek park construction, it is also focusing on building a Texas Taylor factory in the United States. The Taylor factory started construction in the first half of 2022 and is expected to commence operations in 2026. The investment scale of this project is approximately 17 billion US dollars. In April 2024, Samsung signed an agreement with the US Department of Commerce to receive $6.4 billion in subsidies under the Chip Act.
As the US presidential election approaches, people are concerned whether the new president will change subsidy policies. Industry insiders point out that Samsung has invested heavily in lobbying, and if Trump, who emphasizes "America First," is elected, it may increase the uncertainty of Samsung's operations.
Samsung's original plan for the P4 factory was to first build a storage production line (Phase I), followed by a wafer foundry production line (Phase II). Subsequent plans include building another storage production line (Phase III) and a wafer foundry production line (Phase IV) to complete the P4 factory. However, due to difficulties in obtaining wafer foundry customers, the company has adjusted its plans and prioritized the storage production line.
Insiders revealed that the product lineup for the P4 Phase II production line is expected to be determined between January and February 2025, but the specific time has not yet been determined. There are currently no plans for the fourth phase production line. Although some reports suggest that the P5 factory may resume construction in January or February 2025, the project is more likely to be postponed until 2026.
The decision of whether Samsung's various production lines under construction will produce DRAM, NAND, or handle wafer foundry business has attracted people's attention. Some analyses suggest that Samsung is delaying the decision on what products to produce as much as possible, so that the company can operate flexibly according to market conditions. This method may help alleviate fluctuations in the semiconductor market and enhance profitability.
Industry insiders pointed out that while Samsung is adjusting the pace of Pyeongtaek park construction, it is also focusing on building a Texas Taylor factory in the United States. The Taylor factory started construction in the first half of 2022 and is expected to commence operations in 2026. The investment scale of this project is approximately 17 billion US dollars. In April 2024, Samsung signed an agreement with the US Department of Commerce to receive $6.4 billion in subsidies under the Chip Act.
As the US presidential election approaches, people are concerned whether the new president will change subsidy policies. Industry insiders point out that Samsung has invested heavily in lobbying, and if Trump, who emphasizes "America First," is elected, it may increase the uncertainty of Samsung's operations.