Samsung Shifts Pyeongtaek P4 to DRAM, Delays Taylor Facility

Samsung Electronics is reportedly considering adjustments to the timeline and plans for its ongoing foundry construction projects. The company may cancel the planned foundry production line at its Pyeongtaek P4 facility in South Korea, and equipment investments for the Taylor, Texas facility in the U.S. could be delayed by another quarter.

Samsung's global foundry investment and construction plans are facing more delays than initially expected. The primary concern stems from Samsung's uncertainty about whether its advanced process technology can compete in the highly competitive market dominated by industry leaders like TSMC. This challenge has prompted Samsung to revise its plans and postpone the construction and equipment procurement for its foundries.

Currently, Samsung's major foundry projects under construction are the P4 facility in South Korea and the Taylor facility in the U.S. These factories were originally designed to handle the mass production of cutting-edge process nodes, including 4nm, 3nm, and even 2nm technologies.

The Pyeongtaek P4 facility began construction in 2022 and was initially designed as a multi-purpose facility similar to the P3 plant. The first phase was dedicated to NAND Flash production, the second to foundry production, and the third and fourth phases to DRAM production. However, due to fluctuating market conditions, Samsung has been forced to revise the construction sequence, prioritizing memory lines like NAND and DRAM. Recent rumors suggest that Samsung is discussing converting the planned foundry line into a DRAM production line.

Industry experts believe that Pyeongtaek P4's shift to advanced DRAM and high-bandwidth memory (HBM) production is almost certain, as Samsung faces difficulty securing large customer orders, making early investment in the foundry line too risky.

The Taylor facility in the U.S. is facing similar challenges. Initially, Samsung planned for the facility to begin mass production of 4nm chips by the end of 2024. However, reports indicate that Samsung has significantly reduced its investment, with equipment orders for the second half of 2023 only covering a production capacity of 5,000 wafers per month—a scale more suitable for a pilot production line.

Reports suggest that full-scale production at the Taylor facility may be postponed until 2026, with plans shifting from 4nm to 2nm production. Samsung intends to build the cleanroom in the first quarter of 2025 and install the necessary equipment by the second quarter. However, recent updates indicate that Samsung may delay its investment plan for the Taylor facility by another quarter.