Fab delays and cancellations start to pile up
The semiconductor industry is grappling with uncertainty as several high-profile semiconductor fab projects are struggling with delays, suspensions, or outright cancellations.
Several major manufacturers, including Intel, Wolfspeed, SkyWater Technology, PSMC, GlobalFoundries and STMicroelectronics either halted construction or scaled back plans, raising concerns about supply chain stability and long-term market impact.
Intel has postponed multiple fab projects
Intel has also encountered major roadblocks, pushing back multiple fab construction projects in both Europe and the US. In Magdeburg, Germany, the company has faced delays due to ongoing subsidy negotiations with the EU and challenges related to soil removal and reuse. In a statement back in September last year, Intel said that it would “pause our projects in Poland and Germany by approximately two years based on anticipated market demand.”
Meanwhile, Intel’s US-based expansion efforts have also slowed. The USD 20 billion semiconductor facility in Ohio, originally expected to begin operations in 2025, has been delayed due to market conditions and deferred government funding. The revised timeline suggests that production will not commence until at least 2027–2028.
SkyWater abandons Indiana fab plans
Back in July 2022, US-based foundry SkyWater Technology announced plans to open a USD 1.8 billion semiconductor manufacturing facility in Discovery Park District at Purdue University. Plans that were set to create 750 new direct jobs.
However, the plans are no longer on the table as Purdue University confirmed to Inside INdiana Business back in April last year, that SkyWater will not be building the previously announced facility.
PSMC scraps Japan fab project
In July 2023, Taiwanese foundry Powerchip Semiconductor (PSMC) announced that it had teamed up with Japanese financial firm SBI Holdings to establish a 300mm wafer foundry fab in Japan as part of the effort to strengthen the semiconductor supply chain.
The planned fab was to be built in Japan's Miyagi Prefecture under the joint venture JSMC. However, PSMC pulled out of these plans in September of last year in favour of a new partnership in India.
Wolfspeed adjusts strategy amid fab closures and delays
Wolfspeed has announced the impending closure of its 150mm SiC wafer fabrication plant in Durham, North Carolina, citing higher production costs compared to its newer 200mm facility in Mohawk Valley. The company has yet to confirm the precise shutdown timeline.
Additionally, Wolfspeed’s ambitious plan to build a 200mm SiC fab in Saarland, Germany, has been postponed. Originally scheduled for construction in mid-2024, the project will now commence in 2025.
GlobalFoundries-STMicroelectronics project stalled in France
The EUR 7.5 billion planned joint venture fab in Crolles, France, between GlobalFoundries and STMicroelectronics, has reportedly also hit a standstill, according to Bloomberg.
Originally announced in July 2022, the 300mm wafer fab was set to expand production capabilities alongside an existing facility, with a projected annual output of 620,000 wafers by 2026. However, setbacks in execution have now cast uncertainty over the project’s timeline.
The ongoing disruptions across the semiconductor sector highlight growing financial and logistical challenges in global chip production. As significant sector participants reconsider their investment strategies and cost structures, the effects of these delays are likely to be felt across supply chains.
