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Samsung's $17 billion Texas chip factory faces delay due to lack of significant customers while Samsung shares plummet due to delaying ASML equipment delivery

Samsung Electronics has pushed back the delivery of chipmaking equipment ordered from ASML for its $17 billion Texas factory. According to insiders, the company doesn't have any significant customers lined up for the facility, which has been the main reason for delaying the plans. Industry sources further add that Samsung is not yet placing orders with its other suppliers either. With the delay, some vendors have begun to redeploy their staff and resources to other projects.

This is the latest in a succession of setbacks for Samsung's factory in Taylor, Texas. It's crucial for Samsung chairman Jay Y. Lee's ambitions as he expands into contract chip manufacturing very niche field dominated by Taiwan's TSMC. This delay further reinforces the increasingly ever-growing gap between Samsung and its competitor, especially TSMC and SK Hynix, which are boosting their production to catch up with the ever-increasing demand for high-end artificial intelligence (AI) chips.

ASML, the world’s largest supplier of chipmaking equipment, recently cut its 2025 sales forecast, citing delays and weak demand outside of AI-related projects. Though ASML didn't say specifically which customers are involved, Reuters is the first to report that Samsung has delayed shipments for its advanced extreme ultraviolet (EUV) lithography machines, worth around $200 million each. For manufacturing the best kinds of chips used in smartphones or AI servers, such pricey EUV machines are a must-have.

“Without new volume clients, even the 2026 timetable looks challenging,” said Macquarie analysts in a recent report. They warned of a potential asset write-off if Samsung doesn't secure more clients soon.

Samsung initially planned for the Texas factory to begin production in 2024, but it has since pushed that timeline back to 2026. The company claims that it is committed to its new timeline. However, delays in orders may once again push that timeline further back. Analysts claim that if Samsung doesn't place any new orders by early next year, it'll miss its 2026 production start-up date.

Samsung's struggles in the foundry business have also affected its operations in South Korea. The foundry business of the latter company will bear low yields from its 3-nanometer chip production, and the company has stalled additional investment in its foundry lines there. Its competitors, such as Taiwan Semiconductor Manufacturing Co., or TSMC, are going full-throttle. TSMC's first Arizona factory will start volume production by 2025 and will have strong commitments from US

customers.

The company's foundry market share in 2024 has shrunk to 11% while TSMC retains 61.7%. It indicates a growing gap with its competitors Samsung finds difficult to match.