As Samsung Electronics posted the highest-ever results in the history of global tech companies, it is accelerating the expansion of its semiconductor production facilities both domestically and abroad. In response to growing demand for AI (artificial intelligence) semiconductors, the company is expanding HBM (High Bandwidth Memory) production LINEs at Pyeongtaek while advancing efforts to secure medium- and long-term production hubs in Yongin and Gwangju. In the U.S., it aims to build a foundation for advanced foundry (semiconductor contract manufacturing) production to respond to the memory semiconductor (hereinafter referred to as "memory") boom while simultaneously strengthening its competitiveness in system semiconductors.
On the 8th, Samsung Electronics disclosed that its preliminary Q3 consolidated results showed revenue of 195 trillion won and an operating profit of 107.4 trillion won. It became the first domestic company to surpass 100 trillion won in quarterly operating profit. Industry estimates suggest that the DS (Device Solutions) division, which handles semiconductor business, recorded an operating profit of around 108 trillion won. Analysts attribute the performance improvement to expanded HBM supply and rising prices for general-purpose DRAM.
To meet increasing memory demand, Samsung Electronics is expanding the production LINEs for 6th-generation (1c) DRAM at its Pyeongtaek Campus Fab 4 (P4). According to industry sources, the goal is to build equipment capable of producing 100,000 to 120,000 wafers per month by Q1 2027. 1c DRAM is used in HBM4, the 6th-generation HBM. Since HBM is a product made by stacking multiple layers of DRAM, it requires more processes and equipment for production than standard DRAM. Consequently, expanding advanced DRAM production capacity is crucial to simultaneously increase HBM supply and maintain general-purpose DRAM production.
Construction of new fabs (factories) to secure medium- and long-term production capacity is also underway. Pyeongtaek Fab 5 (P5) will be built in stages, with the first fab targeted for operation in 2028 and the second in 2029. Industry forecasts indicate that more than 60 trillion won will be invested in each of the two fabs. While P4 expansion addresses immediate HBM demand, P5 is an investment to secure production capacity needed for next-generation products Yangsan in the medium term.
Investments in new production hubs outside Pyeongtaek are also proceeding. Samsung Electronics plans to invest 360 trillion won in the Yongin National Industrial Complex, centered on system semiconductors, to build six fabs. The first factory in Yongin is targeted for operation in H2 2029. Gwangju is being conceptualized as an additional production hub to prepare for future semiconductor demand expansion. Samsung Electronics plans to invest approximately 400 trillion won in Gwangju to construct two fabs.
Along with expanding domestic production hubs, the company is focusing on broadening its customer base for advanced foundry business in the U.S. It is currently building an advanced semiconductor production facility in Taylor, Texas. Taylor Fab 1 is preparing for operation this year, while Fab 2 is being built with a target of Yangsan in 2030. This move aims to establish advanced process production capacity locally in the U.S. to respond to customers' product development and Yangsan demand, as well as to expand orders for AI semiconductors.
The success or failure of large-scale expansion depends on how quickly the secured production capacity can be reflected in performance. For memory, investment returns can only be expected if demand is sustained after new equipment comes online. In the case of foundry, it is necessary to improve yield and utilization rates for advanced processes to reduce the fixed cost burden associated with massive capital expenditure. An industry official stated, "Since semiconductors require enormous funds and time to build factories, proactive investment based on forward-looking demand is essential." The official added, "However, what matters more than the scale of investment itself is stably operating new production LINEs and connecting secured production capacity to actual revenue."
in INDUSTRY
