Samsung Electronics (KS:005930) shares plunged nearly 12% on Wednesday after a Korea JoongAng Daily report indicated mass production at its $37 billion Taylor, Texas chip plant has been delayed until early 2027. The setback follows pilot operations at the facility, with no clear start-of-production milestone despite earlier guidance suggesting second-generation 2-nanometer chip mass production would begin this year. The report cited shifting schedules and factory utilization issues as key factors. Samsung told the newspaper the plant would be ready to operate by year-end 2026, though full-scale output remains postponed.

The delay contrasts with the company's $16.5 billion contract with Tesla Inc (NASDAQ:TSLA), which had been expected to drive early production. Taylor plant delays raise concerns about Samsung's ability to meet aggressive chip manufacturing timelines and investor expectations for profitability in its memory and foundry divisions. The stock slid 10% in the previous session as well, reflecting mounting investor anxiety over production bottlenecks.