Samsung lifts Chungcheong chip plan to $98B as HBM race heats up
What's the deal? Samsung will invest a combined US$120.7B in South Korea's Chungcheong region to build production bases for high-bandwidth memory (HBM), OLED panels, AI chip package substrates, and next-generation batteries. The group broke ground on November 12 for an advanced HBM packaging plant at Samsung ElectronicsDealroom has a profile for this one. Try Dealroom →' Onyang campus in Asan.
Why now? The plan raises the investment by US$3.35B from the US$117.4B announced in July, with the increase going to HBM. Samsung shortened construction of Onyang Line 5 by a year to meet what it calls "explosive growth" in demand for AI server memory, targeting operations in June 2028.
What's the endgame? Four affiliates are taking part: Samsung Electronics (US$50.3B), Samsung Display (US$56.2B), Samsung SDIDealroom has a profile for this one. Try Dealroom → (US$7.55B), and Samsung Electro-MechanicsDealroom has a profile for this one. Try Dealroom → (US$6.71B). The group aims to turn Chungcheong into a hub spanning semiconductors, displays, and batteries, linking its Onyang and Cheonan sites for back-end chip processing.
An initial US$5.03B will fund Onyang Line 5, a three-story plant of about 31,000 square meters set to produce seventh-generation HBM4E chips.
What changes for the market? The Onyang campus, long focused on assembling and testing general-purpose chips, becomes an advanced packaging base for AI processors. Chairman Lee Jae-yong said the site "will become a state-of-the-art HBM base — the heart of AI semiconductors."
Samsung Display's US$56.2B — the largest share among the affiliates — centers on the A7 OLED line in Asan, which began construction in October and targets mass production in the second half of 2029. It will make panels for foldable devices and tablets.
The signal: Demand for AI-server memory and advanced packaging is pushing Korea's chip giants to build fast. SK GroupDealroom has a profile for this one. Try Dealroom → has pledged US$142.5B for Chungcheong, including SK hynix NAND and packaging facilities, and the accelerated Samsung timeline signals an effort to strengthen its HBM position against that competition.
Read more: en.sedaily.com
Image credit: Generated with Gemini
