As Samsung Electronics resumed construction of its new Pyeongtaek plant (P5), which had been delayed for a while over concerns about overinvestment in semiconductor facilities, SK hynix also sparked a capex race by increasing the anticipated expense for the Yongin semiconductor cluster from the previously announced 120 trillion won to about 600 trillion won.
The fact that the two companies, which recorded large losses years ago due to an AI bubble theory and a D-RAM supply glut, are expanding the scale of facility investment is also evidence that the outlook for a memory supercycle (boom) has become clear. There is also a view that this memory boom will remain valid not only next year but even after 2028.
According to the industry on the 18th, Samsung Electronics recently resumed construction of the P5 project, the fifth line of the second complex at the Pyeongtaek site, which will require more than 60 trillion won. P5 is expected to be a hybrid plant that will produce next-generation high bandwidth memory (HBM) and general-purpose D-RAM in parallel. The target start of operations is 2028, and depending on market conditions, a foundry (contract semiconductor manufacturing) line will be established, with a possibility of moving up the start date depending on circumstances.
In the mid to long term, Samsung Electronics has been preparing a semiconductor production base of 870,000 pyeong by combining the first complex (P1–4) and the second complex (P5–6) at the Pyeongtaek site. If P5 and P6 are built as scheduled, Pyeongtaek will become Samsung Electronics' largest global semiconductor production hub. Of the four total production lines at P4, three are in operation or about to begin production, and it is slated to handle mass production of 10-nanometer-class sixth-generation (1c) D-RAM and HBM4 (sixth-generation HBM).
In addition, Samsung Electronics plans to invest 360 trillion won in the Yongin semiconductor national industrial complex cluster to complete a total of six fabs by 2031. The goal is to break ground on the first-phase fab by the end of next year and begin operations in 2030. When both the line expansion at the Pyeongtaek site and construction at the Yongin semiconductor national industrial complex cluster are completed, a total of 12 fabs will be running.
SK hynix, which had taken a cautious approach to facility investment, is also rapidly expanding the limited production facilities of its saturated Icheon and Cheongju plants to the Yongin semiconductor cluster. In particular, the task is to reduce dependence on the Wuxi, China, plant, which carries risk due to sanctions on China, and to strengthen domestic production capacity.
SK hynix is said to have recently expanded the cleanroom area of the Yongin semiconductor cluster by 50% compared to the original plan. Recently, Yongin Special City gave final approval and notice for the ninth amended industrial complex plan for the Yongin semiconductor cluster general industrial complex and raised the floor area ratio of SK hynix's site (A15) from 350% to 490%. The maximum building height was also eased from 120 meters to 150 meters. As a result, the cleanroom area of the fabs (production lines) to be built in the Yongin semiconductor cluster also increased. With the ability to build cleanrooms 1.5 times larger than initially planned, the investment expense has reportedly expanded.
A total of four fabs are slated to be built in the Yongin semiconductor cluster. Each fab is similar in size to six of SK hynix's recently completed Cheongju M15X fabs. Last year, SK hynix released that more than 20 trillion won would be invested in building the Cheongju M15X fab. By simple calculation, more than 120 trillion won of investment would be needed for one fab in the Yongin semiconductor cluster. If all four fabs are completed, at least 480 trillion won is expected to be invested. Considering that the Yongin semiconductor cluster is a long-term project planned through 2050, this is assessed as a reasonable estimate when accounting for inflation and rising development expense.
Chae Min-suk, a research analyst at Korea Investment & Securities, said, "For memory semiconductors, the average selling price (ASP) will continue to rise amid supply shortages throughout 2026, while profitability will increase sharply thanks to expanded HBM sales," adding, "The memory upcycle rally triggered by AI has only just begun."