Samsung Electronics considers building chip packaging plant

Samsung Electronics is considering the construction of an advanced semiconductor packaging facility in the southwestern South Korean city of Gwangju, the Korea Economic Daily said on Tuesday.

Here are some details:

Samsung is expected to unveil the investment plan at a meeting between South Korean President Lee Jae Myung and the heads ‌of the country's ⁠largest ⁠conglomerates on June 29, the newspaper reported, citing unnamed industry sources.


The meeting, to be held at the presidential office under the theme of a "major shift in growth strategy," is expected to include Samsung Electronics Chairman Jay Y. Lee and SK Group Chairman Chey Tae-won.

Samsung Electronics declined to comment. The presidential ​office said corporate investment decisions are matters for ⁠companies to ‌determine.

The move would mark one of Samsung's latest efforts to strengthen its advanced chip packaging capabilities, a critical part ⁠of the AI chip supply chain as demand surges for high-bandwidth memory (HBM) chips used in AI servers.

The ​newspaper added that the investment would be seen as a sign that the company is seeking to accelerate spending ahead of what many expect to be an upswing in the chip sector driven by AI demand.

Advanced packaging has become increasingly important as chipmakers seek to improve ‌performance by integrating multiple chips into a single package. Demand has been particularly strong for HBM, which stacks multiple DRAM chips vertically and is used ⁠alongside AI processors from companies such as Nvidia.

Samsung's customers include major AI players such as Nvidia, AMD and Google, which are driving demand for ​advanced memory chips used in AI servers and processors.

Samsung has been expanding its presence in the HBM market as it seeks to challenge market leader SK Hynix. In May, the company said it had begun shipping samples of its latest HBM chip, the 12-layer HBM4E, to customers.