Samsung Delays Pyeongtaek Plants, Focuses on Texas

Samsung Electronics has recently decided to pause the construction of the second-phase wafer foundry production line at its Pyeongtaek P4 plant. Reports indicate that the construction of both the second and fourth phases at the Pyeongtaek P4 site, as well as the P5 plant, has been postponed until 2026. Currently, Samsung is prioritizing the development of its wafer fabrication facility in Taylor, Texas.

The delay is attributed to Samsung's decision not to complete the necessary financial assessments for the Pyeongtaek P5 plant by the end of July 2024. As a result, the construction schedules for both the P4 and P5 facilities have been affected. Despite these delays, the first phase of the P4 facility, which will produce NAND Flash, is expected to begin operations soon. The third-phase production line is currently under construction, with installation of essential equipment planned shortly after the Mid-Autumn Festival.

Samsung's original plan for the P4 plant included developing a memory production line (Phase 1), followed by a wafer foundry line (Phase 2). Subsequent phases were to include an additional memory production line (Phase 3) and another wafer foundry line (Phase 4). However, due to difficulties in securing customers for the wafer foundry, the company has adjusted its strategy to prioritize memory production lines.

Industry insiders have indicated that the product lineup for the P4 Phase 2 line is expected to be finalized between January and February 2025, though the exact timing remains uncertain. Currently, there are no plans to proceed with the fourth phase. While some reports suggest that construction on the P5 plant may resume in early 2025, it is more likely to be delayed until 2026.

The market is keenly observing Samsung's decision-making regarding whether the new production lines will focus on DRAM, NAND, or wafer foundry services. Analysts suggest that Samsung is deliberately delaying these decisions to retain operational flexibility and better respond to market dynamics. This approach could help the company manage semiconductor market fluctuations more effectively and improve profitability.

As Samsung adjusts its expansion plans at the Pyeongtaek complex, it remains focused on developing the Taylor, Texas, plant. Construction of the Texas facility began in early 2022, with operations slated to start in 2026. This project, involving an estimated investment of $17 billion, received a $6.4 billion subsidy under the U.S. CHIPS Act, following an agreement with the U.S. Department of Commerce in April 2024.