Samsung Aims to Reclaim Semiconductor Glory with Cheonan Facility Expansion

Samsung Electronics announced plans to expand its semiconductor packaging facilities in South Korea’s Chungcheongnam-do province to increase production of High Bandwidth Memory (HBM) chips. These chips are fundamental to artificial intelligence computing, and demand is soaring.

According to company officials, the expansion involves transforming a currently underutilized LCD factory in Cheonan, approximately 85 kilometers south of Seoul, into a semiconductor manufacturing plant. This project is underpinned by a memorandum of understanding with the Chungcheongnam-do government. The new facility is expected to be completed by December 2027 and will feature state-of-the-art HBM packaging production lines.

The packaging process is a crucial phase in semiconductor manufacturing, providing essential protection for chips against mechanical and chemical damage. Through upgrading the Cheonan facility, Samsung Electronics aims to regain a competitive edge in the global semiconductor market. The company is currently trailing its domestic rival, SK Hynix, in the HBM segment.

Samsung has faced setbacks with quality issues affecting its supply of the latest fifth-generation HBM3E chips to Nvidia, thereby delaying plans. Despite these challenges, the expansion of the Cheonan plant signifies Samsung's strategic move to bolster its capabilities and address the increasing market demand for high-performance memory solutions.