Samsung and SK Hynix Planning Major New Semiconductor Plant
Several locations are reportedly being reviewed for the potential facility
As global demand for artificial intelligence and advanced computing technologies continues to rise, South Korean semiconductor leaders Samsung Electronics and SK Hynix are exploring major expansion plans to strengthen their manufacturing capabilities. Reports suggest that the two companies are considering developing their first jointly operated semiconductor production complex in South Korea’s Honam region.
Several locations are reportedly being reviewed for the potential facility, including Gwangju, Saemangeum, and Muan. While the final site has not yet been officially selected, an announcement on the project’s location is expected by the end of the month. The initiative is viewed as an important move to stimulate regional economic growth while helping South Korea maintain its competitive position in the global semiconductor industry.
Expanding Semiconductor Production Capacity
Samsung is accelerating its efforts in the High Bandwidth Memory (HBM) market, a key technology for AI systems and high-performance computing. The company has reportedly increased its HBM production capacity by almost 50% compared with 2025. Samsung’s long-term goal is to achieve output of approximately 250,000 semiconductor wafers per month by the end of 2026.
SK Hynix is also pushing forward with its expansion strategy. The company is currently constructing its P&T7 facility in Cheongju, a site focused on advanced semiconductor packaging and testing. The new complex is expected to become fully operational in 2027 and will supply next-generation components to customers worldwide.
Samsung Electro-Mechanics, a Samsung subsidiary, is also planning further investment in its existing Sejong facility. The expansion is being driven by growing demand for FC-BGA packaging substrates from major customers in North America.
These large-scale investments are expected to have a major impact beyond South Korea. New semiconductor facilities will help address the growing global need for advanced memory chips used in smartphones, servers, and AI infrastructure. For consumers, increased production capacity could contribute to more stable pricing and availability of electronic devices and computer hardware.
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