Additionally, Samsung has been postponing orders to various other suppliers for the $17 billion facility in Taylor, leading these suppliers to seek alternative clients and to send their on-site personnel back home, as reported by three other sources.
This postponement of equipment deliveries represents a new challenge for the Taylor project, which is central to Samsung chairman Jay Y. Lee's strategy to diversify from its core memory chip business into contract chip manufacturing, a sector currently dominated by Taiwan's TSMC.
The situation highlights the growing disparity between Samsung and competitors like TSMC and SK Hynix, who are increasing their production of advanced chips to meet the surging demand driven by artificial intelligence applications.
ASML, the leading supplier of chipmaking equipment globally, revised its 2025 sales forecast downward on Tuesday, attributing this to weakness in markets outside of AI and delays in fab projects.
The Dutch firm did not specify which clients have postponed their fab projects. Reuters was the first to report that Samsung has deferred the delivery of certain ASML equipment.
According to two sources, the postponed shipments to Samsung's Taylor facility include ASML's cutting-edge extreme ultraviolet (EUV) lithography equipment.
One source indicated that these deliveries were initially scheduled for earlier this year but have yet to be dispatched. The third source mentioned that Samsung has rescheduled the delivery of some ASML equipment to the factory, without providing further details on the specific equipment or the updated delivery timeline.
EUV machines, valued at approximately $200 million each, utilize light beams to create intricate design features on silicon wafers. These machines are essential for producing advanced chips used in smartphones, electronic devices, and AI servers.
The specifics regarding the number of EUV machines ordered by Samsung and the associated payment terms remain unclear.
Both ASML and Samsung have refrained from commenting on the situation involving ASML. Sources who spoke with Reuters requested anonymity due to their lack of authorization to discuss the matter publicly.
In April, Samsung announced that production at its Taylor facility would commence in 2026, a delay from the previously anticipated start in 2024. Earlier this month, Samsung's Lee informed Reuters that the company is encountering challenges related to the factory's development.
Industry sources and analysts have indicated that there is a potential for additional delays.
"Without new volume clients, even the 2026 timeline appears difficult... We foresee the possibility of further postponements and an asset write-off," stated analysts from Macquarie in a September report, suggesting that the fab could become a "stranded asset."
Lee Min-hee, an analyst at BNK Investment & Securities, noted that if Samsung does not place orders for additional equipment by early next year, it may indicate further delays, considering the lead time necessary for production initiation.
According to a source familiar with the situation, Samsung aims to finalize the construction of the facility by early next year.
In a statement to Reuters, Samsung confirmed that there are no changes to its plans for starting production at the Taylor fab in 2026, and the return of its personnel is part of a standard rotational shift.
Despite ongoing efforts to compete with TSMC, Samsung's market share in contract manufacturing has decreased by 8 percentage points over the past five years, dropping to 11% as of the first quarter of 2024. In contrast, TSMC's market share has increased to 61.7% during the same timeframe, according to data from research firm Statista.
Samsung's decline in market share highlights the technological hurdles the company faces in advancing its chip manufacturing capabilities, which are essential to attract major clients like Apple and Nvidia away from TSMC, according to analysts.
On Tuesday, ASML's finance chief, Roger Dassen, noted that there are "very specific competitive issues in the foundry business," with some clients gradually increasing their advanced chip production while postponing new fabrication plants.
Analysts point out that Intel's current struggles, marked by significant challenges and a reduction in its capital expenditure plans for 2025, are also contributing to ASML's less optimistic outlook.
In contrast, TSMC announced on Thursday that its first fabrication facility in Arizona is expected to begin volume production in 2025, with strong commitments from U.S. customers.
Samsung's difficulties in the foundry sector have also affected its South Korean operations, where it is facing low production yields for its cutting-edge 3-nanometer chips, according to sources familiar with the situation. Additionally, the company is postponing investments in new foundry chip lines in Pyeongtaek, located south of Seoul, as reported by two insiders.
Samsung has chosen not to comment on the situation regarding its Korean factories.
Reflecting Samsung's decelerating capacity growth, ASML disclosed that its sales to South Korea—home to both Samsung and its smaller competitor SK Hynix—fell by one-third in the third quarter, dropping to 889 million euros ($965 million) from the previous quarter, as indicated in its presentation materials.
Moreover, Samsung is losing its competitive edge in the memory chip sector, with SK Hynix emerging as the leading supplier of high-bandwidth memory (HBM) chips, which are crucial for Nvidia's AI chipsets.
ASML CEO Christophe Fouquet remarked during a conference call this week that without AI, the market would be in a dire state, adding that the recovery for mobile devices and PCs is expected to be slower than anticipated and will likely extend into the next year.