Nikkei Asia's sources claim the South Korean giant has all the kit it needs to start making chips at the plant but is stuck with a process node that nobody wants and no one ready to sign on the dotted line.

Originally started in 2022 with a wallet-busting $17 billion investment, the Taylor fab was supposed to help Samsung claw a bigger slice of the semiconductor pie. By 2024, someone at Samsung decided to slap in another advanced fab and tossing the budget up to $44 billion. This cash splurge comes with a handy $6.6 billion in CHIPS Act subsidies, finalised in December last year, despite the project running into more delays than a Southern Rail timetable.

Samsung C&T, which is leading the build, insists the site is still moving forward. The paperwork shows 92 per cent of it was finished as of March 2024. While they were originally meant to wrap up by April, filings now reckon October is more likely.

No official reason has been floated for the hold-up, but sources are pointing fingers at poor demand. The fab was originally going to pump out chips on the 4nm process node. But with tech moving at lightspeed and 4nm now looking a bit last season, Samsung has started shifting its sights to 2nm, where TSMC and Troubled Chipzilla already have a head start.

A supply chain executive told Nikkei Asia: "Local demand for chips isn't particularly strong, and the process nodes Samsung planned several years ago no longer meet with current customer needs."

He added: "However, overhauling the plant would be a major and costly undertaking, so the company is adopting a wait-and-see approach for now."

Upgrading to 2nm is no walk in the park. It eats time, money, and resources, all while the plant stands mostly idle. Still, Samsung says it will open the Taylor site by 2026 to secure its CHIPS Act cash and avoid slipping further behind TSMC.

It seems the Taylor plant might open with little to do, but staying shut would risk turning that $44 billion investment into one very expensive white elephant.