Samsung to build advanced chip packaging plant in South Korea, bolstering AI supply

Samsung Electronics is reportedly planning a significant investment in advanced semiconductor packaging, with reports indicating the construction of a new plant in Gwangju, South Korea. This move is seen as a strategic effort to bolster Samsung's role in the rapidly growing artificial intelligence (AI) supply chain.

The proposed facility will focus on advanced packaging technologies, a critical component for AI servers, especially for High Bandwidth Memory (HBM). The demand for HBM, which involves vertically stacking multiple DRAM chips for use with AI processors from companies like Nvidia, is experiencing a surge.

This investment signals Samsung's commitment to expanding its production capacity to meet the escalating demand driven by AI. The company aims to challenge market leader SK Hynix in the HBM sector, having recently begun offering samples of its latest 12-layer HBM4E chip. Samsung's client list includes AI giants such as Nvidia, AMD, and Google, all of whom are driving the need for advanced memory solutions.

The investment plan is expected to be officially announced later this month during a meeting between South Korean President Lee Jae-myung and the heads of major corporations at the Blue House. Samsung Electronics Chairman Lee Jae-yong and SK Group Chairman Choi Tae-won are anticipated to attend the meeting.