$6.6 Billion Later, Still No Chips: Samsung’s Texas Stall Exposes CHIPS Act Flaws

TAYLOR, Texas — Samsung Electronics has postponed its $44 billion semiconductor factory in Taylor, Texas, missing a 2024 production start date, despite receiving $6.6 billion from the Biden administration’s CHIPS Act, according to a Nikkei Asia report on July 3, 2025. Now slated for 2026, the delay stems from a lack of customers for the planned chips.

Construction, launched in 2022 with a $17 billion investment, is 92% complete as of March 2024, per Samsung C&T. However, the company is holding off on equipment installation due to weak demand for the originally planned 4nm process node chips. Sources indicate a potential upgrade to 2nm technology is under consideration, though it’s a costly and time-intensive shift with no set timeline. The CHIPS Act, signed by President Biden in 2022 and finalized with Samsung’s subsidy in December 2024, aimed to kickstart U.S. chip production by 2024, promising over 20,000 jobs and reducing foreign dependency.

The missed 2024 deadline has spotlighted the $6.6 billion investment, part of a $52 billion effort to secure 20% of global advanced chip output by 2030. Samsung’s stall contrasts with TSMC’s sold-out 4nm capacity in Arizona, raising questions about the funds’ impact. The company has adopted a “wait-and-see” approach, risking CHIPS Act milestones tied to operational starts.

The Taylor plant, featuring two fabs, an R&D facility, and a packaging unit, was a flagship project under Biden’s manufacturing push. The delay could delay job creation and national security goals. Samsung declined to comment on customer shortages but reaffirmed a 2026 target.

Other CHIPS Act recipients, like Intel, have also faced setbacks, adding pressure to the program’s timeline. The 2024 miss marks a significant challenge to the administration’s pledge to revitalize U.S. semiconductor production.