Samsung Rushes to Build Another AI Chip Factory as Demand Rises

Samsung is reportedly preparing to build a new factory at the Pyeongtaek semiconductor hub, Gyeonggi Province. The goal is to increase the production of next-generation high-bandwidth memory (HBM), a core component of the AI chips. The company is expected to begin investment as early as next month.

Samsung plans to build its 5th plant at the Pyeongtaek hub to boost HBM production

Samsung’s Pyeongtaek Campus is the largest semiconductor manufacturing hub in the world. It covers 2.89 million square meters with the capacity for six operational factories. Last year, the Korean firm planned to begin construction of its 5th plant (P5) to expand its chip production. However, due to a downturn in the chip market, it postponed the project. It looks like the company is now expecting market conditions to improve and is preparing to move forward.

According to a report from BusinessKorea, Samsung has begun setting up steel structures at the Pyeongtaek Plant 5. Furthermore, the company is providing safety training to workers, suggesting that the full-scale construction is about to start soon. It plans to produce HBM products at this factory to meet the increasing demand for AI chips from global tech giants.

“Samsung Electronics will expand its market share in the HBM market in 2026 through new expansion of the Pyeongtaek campus in the first quarter of next year,” said Kim Dong-won, a researcher at KB Securities. “It is highly likely to start initial production of HBM4 from the fourth quarter.”

While the HBM market is growing, Samsung is still lagging behind in this space, mainly due to its late entry. Industry leader and arch-rival SK Hynix has already secured major contracts with big clients like Nvidia for the HBM3E chip. Meanwhile, Samsung is trying to enter Nvidia’s HBM supply chain but continues to face setbacks in the quality test certification process. Now, the company aims to bounce back in the competitive AI memory market with its 6th-generation HBM chip, HBM4.