Samsung Electronics has announced a delay in the construction of its Pyeongtaek P4 and P5 chip plants, with the completion now set for 2026. The South Korean tech giant has decided to focus on building a semiconductor plant in Taylor, Texas, ahead of its domestic facilities.
The company had previously decided to halt the construction of the second-phase wafer fabrication line at its Pyeongtaek P4 plant. Recent reports indicate that the construction of the second and fourth-phase production lines at the P4 plant, as well as the P5 plant, will be rescheduled to 2026. Currently, Samsung is prioritizing the development of its wafer fabrication facility in Taylor, Texas.
The delay in the Pyeongtaek plants’ construction is attributed to Samsung’s failure to conduct the necessary financial review for the P5 plant by the end of July 2024. This has led to the postponement of both the P5 and P4 plant construction plans. However, the first-phase production line for NAND Flash at the P4 plant is expected to start operations soon, with the third-phase line currently under construction and set to install electrical equipment after the Mid-Autumn Festival.
Samsung’s original plan for the P4 plant involved constructing a storage line (phase one), followed by a wafer fabrication line (phase two), with subsequent plans for another storage line (phase three) and a wafer fabrication line (phase four) to complete the facility. However, due to challenges in securing wafer fabrication clients, the company has adjusted its plans, giving priority to storage lines.
Insiders reveal that the product lineup for the second-phase line at P4 is expected to be determined between January and February 2025, although the exact timeline remains uncertain. There are currently no plans for the fourth-phase line. While some reports suggest that the P5 plant may resume construction in January or February 2025, it is more likely to be postponed until 2026.
The decision on what products the various production lines at Samsung will manufacture—DRAM, NAND, or wafer fabrication services—has sparked considerable interest. Some analysts believe that Samsung is delaying the decision on product manufacturing as much as possible to maintain operational flexibility based on market conditions. This approach could help mitigate the volatility in the semiconductor market and enhance profitability.
Industry sources note that while Samsung is adjusting the pace of construction at its Pyeongtaek campus, the company is focusing on the development of its facility in Taylor, Texas. The Taylor plant began construction in the first half of 2022 and is expected to start operations in 2026. The project is estimated to cost around $17 billion. In April 2024, Samsung signed an agreement with the U.S. Department of Commerce to receive a $6.4 billion subsidy under the Chips Act.
As the U.S. presidential election approaches, there are concerns about whether a new president might alter the subsidy policy. Industry insiders indicate that Samsung has invested heavily in lobbying efforts, and if a America First candidate like Trump is elected, it could increase uncertainty for Samsung’s operations.
The delay in the Pyeongtaek plants’ construction comes at a critical time for the semiconductor industry. With global demand fluctuating and trade tensions escalating, Samsung’s strategic move to prioritize the Texas facility reflects a broader trend among tech companies to diversify their manufacturing locations and reduce reliance on a single region.
Samsung’s decision to推迟 the Pyeongtaek P4/P5 chip plant completion to 2026 and focus on the Texas Taylor facility underscores the company’s adaptability in response to changing market dynamics and geopolitical challenges. As the semiconductor landscape continues to evolve, Samsung’s strategic investments and careful planning will be crucial in maintaining its competitive edge in the global market.
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