Semiconductor fabrication plants might see a delay in construction

News Analysis




Semiconductor fabrication plants might see a delay in construction

Companies such as TSMC, Samsung, and Intel have been adjusting construction plans to fit their long-term visions. 

After an industry downturn in 2023 and a slower than anticipated recovery in 2024, several semiconductor manufacturers have been adjusting and rescheduling the current development plans for some of their fabrication plants.  

Intel’s 1nm chip plant in Germany and US-city Ohio have been delayed in construction, citing a pending approval of EU subsidies and additional groundwork that includes removing and reusing soil. As such, the construction completion date has been pushed back to May 2025. This is already a delay from an initial report that indicated the fabrication facility would be operation in Q1 of 2023. 

Samsung, Wolfspeed, and TSMC have further postponed the construction completion date on their fabrication facilities citing similar reasons as Intel, which include pending approval for subsidies for Wolfspeed. Samsung and TSMC have indicated a downturn in the industry has aided in the decision to adjust the completion date of their fabs, focusing on high-end DRAM lines for completion first.  

Despite a slower than expected recovery in demand, the industry remains on track for a steadier recovery towards the end of 2024.