TSMC U.S. Project Ahead, Samsung May Lose Market Edge

According to recent reports, TSMC has officially launched production at its mobile semiconductor plant in the United States ahead of schedule, responding to increasing customer demand. In contrast, Samsung Electronics has postponed the operational timeline for its Taylor, Texas facility until next year, potentially hindering its efforts to catch up with TSMC.

On September 20, TSMC successfully produced its first mobile application processor (AP), the A16, using a 4-nanometer process at its Arizona facility. This marks TSMC's initial foray into semiconductor production in the U.S., with the A16 set to power the anticipated iPhone SE4, expected to launch early next year.

Construction on the Arizona plant began in May 2021, and after three years and four months, TSMC has achieved semiconductor mass production, advancing the timeline by four to nine months compared to its original plan for mid-2025. This suggests that the facility may reach full production capacity sooner than anticipated.

TSMC is currently constructing two additional wafer fabs in Arizona, with plans to expand to six by 2030. If mass production can be ramped up quickly at the first plant, TSMC may also expedite the establishment of a state-of-the-art micro-manufacturing facility.

Industry insiders indicate that TSMC has already commenced or is about to begin production of the A16 semiconductor and will also manufacture chips for other clients. Meanwhile, Samsung has yet to secure U.S. government subsidies, which has delayed its progress. Any further delays in subsidy approval, coupled with rising construction costs, may extend the completion timeline.

Recently, there have been rumors of layoffs at Samsung's overseas subsidiaries, including the Taylor facility, which has seen its operational start date pushed from late this year to 2026. As of the end of August, construction was approximately 59.7% complete. In addition to the two facilities in Taylor, Samsung plans to establish an advanced packaging R&D center, though completion dates for these projects remain uncertain.

Observers in the semiconductor industry believe that delays in expanding production facilities may weaken Samsung's ability to attract AI semiconductor clients. TSMC's earlier operational commencement gives it a competitive advantage in securing both customers and talent in the market.