Samsung delays receiving ASML chip manufacturing equipment due to lack of customers

(CLO) Samsung Electronics has decided to postpone receiving chip manufacturing equipment from famous supplier ASML for its new semiconductor factory in Taylor, Texas (USA). This decision was made in the context that Samsung is facing many serious challenges in the chip manufacturing sector.

According to information from Wccftech, Samsung is currently having difficulty signing large order agreements due to the low yield of its 3nm GAA (Gate-All-Around) process. This is an advanced chip manufacturing process but has not achieved the expected efficiency, making many potential partners hesitant.

This failure forced Samsung to apologize in its Q3/2024 earnings report, admitting that it missed the opportunity from the explosion of artificial intelligence (AI) and failed to sign a contract to supply HBM (High Bandwidth Memory) to Nvidia.

Samsung factory in Texas (USA).

The lack of large orders has led to the decision to delay receiving equipment from ASML. It is known that each EUV machine from ASML costs up to 200 million USD, so this decision is considered reasonable in the current situation when no customer is willing to take advantage of the advanced technology from Samsung's new factory.

One of the main reasons why Samsung is struggling is because it has fallen behind its biggest competitor, TSMC (Taiwan Semiconductor Manufacturing Company). Many companies, including its Korean counterparts, have turned to TSMC to manufacture chips using more advanced processes.

This has made Samsung's situation even more difficult. In response, Samsung has cut the number of executives from various semiconductor divisions in an effort to restructure and find a path towards more sustainable profits.

There have been reports that Samsung has reduced staff at the Taylor plant due to difficulties, but a senior executive at the company has denied this. He affirmed that the plant will be completed on schedule by mid-2025 and that staff will be regularly rotated between different locations to ensure operational efficiency.

However, there is no denying that the decision to delay receiving EUV machines from ASML is a sign that Samsung is facing a major obstacle in its semiconductor strategy. ASML, the world's leading supplier of chip manufacturing machinery, has also had to cut its sales forecast for 2025 due to the impact of this decision by Samsung.

While Samsung executives have tried to maintain confidence in the group’s resilience, the reality is that the company is facing a serious crisis in the semiconductor industry. Setbacks in the development of advanced technology, combined with increasingly fierce competition from TSMC, are posing major challenges for Samsung in regaining market share.

Source: https://www.congluan.vn/samsung-e-khach-hoan-nhan-thiet-bi-san-xuat-chip-asml-post317586.html