The U.S. once had ambitious plans to increase semiconductors** domestically in response to global chip shortages and geopolitical risks. However, the plan appears to have suffered a major setback. According to the latest reports, tech giant Samsung Electronics Co. and its rival Taiwanese semiconductor manufacturing *** TSMC have postponed plans for mass production of new chip factories in the United States.
Samsung's factory, which was originally scheduled to start production in the second half of 2024, has now postponed mass production to 2025. Previously, TSMC had decided to postpone production of its new wafer fab in Arizona from 2024 to 2025 due to a lack of experienced construction workers and machine installation technicians. The two major chipmakers have delayed production in their factories operating in the United States, which is undoubtedly a blow to U.S. chip policy.
The postponement of production at chip factories in the United States by these two chip companies may be closely related to the current market supply and demand situation, in addition to local environmental permits and financial subsidies in the United States. Once the U.S. plant is operational, it will inevitably affect production in other regions. This, coupled with the relatively high manufacturing costs in the United States, will be a heavy burden for the two chipmakers. In the event of a decline in market demand, they may need to cut production at other factories or even close some factories to maintain operations at their U.S. plants.
This series of production delays not only reveals the challenges of the U.S. in rapidly building semiconductor production capacity, but also highlights the impact of global chain complexity and market volatility on chipmakers' decision-making. In this highly competitive and ever-changing industry, manufacturers need to consider a variety of factors, including cost, technology, market, and geopolitics, to develop smart investment and production strategies.
For the United States, the road to increasing domestic semiconductors is obviously full of twists and turns. And in this increasingly globalized world, any country that wants to realize the "chip dream" of self-sufficiency needs to overcome many obstacles.