Samsung Electronics is moving to expand the production capacity of its Pyeongtaek semiconductor plant to meet growing demand for memory chips driven by the spread of artificial intelligence (AI). After deciding to resume construction on the Pyeongtaek 5 line (P5), it has begun the bidding process for key infrastructure, and there are signs that the timing for bringing in equipment for the Pyeongtaek 4 line (P4) is being moved up.
On the 29th, the industry said Samsung Electronics is pushing a competitive bidding process to order gas and chemical supply facilities for Pyeongtaek P5. Gas and chemical process equipment are among the most important elements in building production lines. Orders typically proceed after the frame construction, but this time, to pull forward the mass production timeline, the company is said to be adopting a "fast-track" approach that carries out frame construction, equipment orders, and setup work simultaneously.
In particular, P5 is a new production line that Samsung Electronics is pursuing in the second Pyeongtaek complex. An internal decision-making body recently decided to proceed with the frame construction, targeting operations in 2028. However, with the electronics and IT industries suffering from a severe shortage of memory chips and projections that the supply shortfall will worsen starting next year, there are expectations that the start of operations could be moved up.
Global industrial gas companies and domestic equipment firms are reportedly preparing to participate in the bidding. Prospective bidders are being mentioned specifically, including Linde, Air Liquide, Hanyang Kigong (Merck), WONIK HOLDINGS, Hanyang ENG, and STI. The total investment is estimated at at least hundreds of billions of won to as much as the trillion-won range.
A source familiar with Samsung Electronics said, "This P5 investment is progressing at an unprecedented pace. It is common for 'utility' parts such as gas and chemical facilities to proceed after the frame construction, but it appears that concurrent investment has been decided this time," adding, "It reflects management's judgment that the company must respond quickly to market conditions."
The P4 expansion investment, which will be the core of 10-nanometer sixth-generation (1c) DRAM production that Samsung Electronics has prepared for over a long period, is also turning into a speed race. Recently, the target timing for P4 equipment move-in and test runs was reportedly pulled forward by about two to three months from the original plan. The 1c DRAM will be installed in sixth-generation HBM (HBM4), the biggest battleground in next year's AI memory market.
Investment in cutting-edge processes is also continuing. Samsung Electronics earlier decided to introduce High NA EUV equipment for mass production and is responding quickly to next-generation fine processes. For EUV (extreme ultraviolet) equipment, it is essential to build various auxiliary equipment and platforms before delivery. The industry interprets this as being closely related to Samsung Electronics' recent aggressive equipment orders.
Major equipment partners are also focused on keeping pace with Samsung Electronics' investment speed. An official at a major domestic equipment maker said, "Samsung Electronics' order volume is larger than expected, and the pace is so fast that meeting delivery deadlines is tight," adding, "Domestic equipment makers, despite tight schedules, are mobilizing all production lines to meet the schedule as much as possible, but some overseas firms are showing reluctance."