Samsung and SK Hynix Plan to Build a Major New Semiconductor Plant in South Korea

As global demand for AI and high-end technology surges, South Korean tech giants Samsung Electronics and SK Hynix are taking a strategic step to expand their production capacity. Reports indicate that the companies are discussing the possibility of building their first joint semiconductor manufacturing complex in the Honam region. This is reported by Ixbt.com reports .

Currently, several potential sites for the new industrial facility are being considered, including Gwangju, Saemangeum, and Muan. According to the ixbt.com publication, the final location of the project has not yet been officially confirmed, but a definitive decision and official announcement are expected by the end of this month. This initiative is seen as a significant step toward developing the regional economy and maintaining leadership in the global chip market.

Production Capacity Expansion Strategy

Samsung is significantly strengthening its position in the High Bandwidth Memory (HBM) segment. The company has managed to increase its HBM production volume by nearly 50 percent compared to 2025. According to strategic plans, Samsung aims to reach a production level of 250,000 semiconductor wafers per month by the end of 2026.

In parallel, SK Hynix is also in an active phase of expansion. The company's P&T7 plant, which produces advanced packaging and testing components in Cheongju, is currently under construction. According to the plan, this high-tech complex will be fully operational in 2027 and will begin supplying high-quality components to the global market.

Samsung Electro-Mechanics, a subsidiary, is also not standing still. The company is considering additional investments in its existing plant in Sejong. This measure is explained by the sharp increase in demand for FC-BGA packaging substrates from major customers in the North American market.

These large-scale projects are of great importance not only for South Korea but for the entire global technology industry. These new facilities will serve as a key driver in addressing the shortage of memory chips required for modern smartphones, servers, and AI systems. For consumers, this news is indirectly important, as an increase in global production helps stabilize the prices of gadgets and computer hardware.