Samsung came with news that there was a change in building a factory in the United States, and the US plan may be lost

The United States is vigorously developing chip localization, leading chip giants such as TSMC to build factories in the United States, while taking out $52 billion in subsidies to urge Intel, Micron and other giants to set factory construction goals.

Originally, Samsung also planned to invest $17 billion to build a factory in Texas, but news from Samsung that the factory construction will be postponed to 2024. It stands to reason that the United States has taken out a large amount of subsidies, why did Samsung delay the construction of the factory? Did the U.S. plan come to naught?

Many countries and regions are actively developing the chip manufacturing industry, such as India taking $10 billion as incentives, the European Union spending 43 billion euros to significantly increase chip production capacity, and Japan inviting TSMC to build factories and providing huge subsidies.

Among these countries and regions, the actions of the United States have attracted the most attention. Because the United States finally decided on a $52 billion subsidy bill, many manufacturer giants hope to receive subsidies to expand the advantages of the industrial chain.

In particular, TSMC initially refused the United States' invitation to build a factory TSMC, but after subsidies, TSMC set an investment target of $12 billion to build a 5nm factory in Phoenix, Arizona, which will be put into operation as soon as 2024.

The United States wants more than this, TSMC alone a chip factory is not enough to change the status quo of the US chip manufacturing industry, so Intel, Micron and other American giants have successively launched hundreds of billions of dollars of factory construction plans to support chip factory construction spending in the next decade.

So many giants are attracted by US subsidies, how can Samsung not be moved?

Samsung has long determined the plan to build a factory in Texas, up to $17 billion to plan a high-end chip factory in the local city of Taylor, once the factory is completed, Samsung may have a greater certainty to participate in the market competition and compete with TSMC for orders from American customers.

According to news on October 19, Samsung's new factory construction in Texas has been postponed to 2024.

This is not the first time Samsung has postponed the plan, which was originally planned to start the groundbreaking ceremony of the new plant in the first half of this year, but the progress has been delayed. Now there is news that the longest has been postponed to 2024, when TSMC's US 5nm factory may have been completed and put into production, and it may not make much sense for Samsung to start factory construction.

And when the time comes, TSMC will prepare for the mass production of 2nm chips, and Samsung will have to make more efforts to close the distance with TSMC.

The reason why Samsung has postponed the factory plan is nothing more than a shift in market demand. Samsung set the goal of building a factory in the United States when the chip market was in short supply, and wanted to get more capacity support in order to compete in the market.

But now that the demand for consumer electronics is declining, American chip companies have begun to adjust chip inventory, even TSMC is facing the situation of customer cuts, and even TSMC has significantly reduced capital spending by $4 billion this year, in this market environment, how can Samsung risk $17 billion to build factories with unknown futures?

So Samsung chose to postpone the plan and wait and see where the market goes. If the market demand does not turn around, the possibility that Samsung will be delayed forever cannot be ruled out.

The United States has painstakingly invited foreign companies to build factories in the United States, spent several years discussing and formulating chip subsidy bills, and although it has successfully mobilized the investment enthusiasm of chip giants, it cannot be too happy until everything is settled. Just like Samsung postponed the construction of the factory this time, no one expected this.

Did the U.S. plan come to naught? Even if the U.S. chip localization goal can continue, it will be difficult to reach the last step.

First of all, the United States needs the support of the consumer market to make strong cores, but the United States does not allow American companies to sell high-end chips at will, which will lead to the consumer market reducing its dependence on foreign imports.

Why should the United States vigorously develop chip manufacturing? A large part of the reason is that the United States wants to control the sales rights of the high-end chip market and obtain pricing advantages in the industrial chain.

It's just that the United States will let countries and regions try to make their own chips and no longer rely too much on the chip products of American companies. At that time, the chips made by American companies cannot be sold in the consumer market, and they will not be able to obtain income. Without revenue, it is possible for companies to reduce costs, lay off employees, and abandon edge businesses.

其次美国集中产业链资源会导致芯片制造成本增加，供应商多半不愿意承担这些成本，只能让消费者买单。

Consumers have reduced their purchasing power due to inflation and other issues, and they are unwilling to accept the rising price of chip goods. After consumers are unwilling to pay, the result needless to say, manufacturers will reduce chip production capacity, and the supply chain will return to the original weak demand state.

In a word, no matter how high the chip manufacturing process is, if the consumer market does not want it, it actually does not make much sense. Instead of engaging in small circles on its own, the United States should return to globalization and adjust the industrial chain to the level of normal development.