**SEO Title:** South Korea’s Semiconductor Giants Boost AI Chip Investments
**Meta Description:** South Korea’s leading semiconductor firms, including Samsung and SK hynix, are ramping up investments in AI chip production facilities amid strong market growth.
**URL Slug:** south-korea-semiconductor-ai-chip-investments
**Headline:** South Korea’s Semiconductor Leaders Increase Investments in AI Chip Production
South Korea’s top semiconductor companies are significantly increasing their investments in production facilities, spurred by optimistic forecasts for rapid growth in the artificial intelligence (AI) chip market. Samsung Electronics is currently evaluating plans to resume construction of its chip manufacturing plants in Korea, while SK hynix has recently initiated the development of a new back-end processing facility.
According to industry sources, Samsung is preparing to restart work on its Pyeongtaek Campus Line 4, where construction was previously halted last year. This facility, known as P4, is Samsung’s fourth major chip production site at the Pyeongtaek location and is divided into four phases. Phases 1 and 3 are nearing completion, and recent reports indicate that work orders have been issued for Phases 2 and 4, with full-scale construction anticipated to commence within the next two to three months.
Originally intended for foundry production, two sections of the P4 facility are now expected to be repurposed for DRAM production lines. These lines will manufacture sixth-generation 1c DRAM using a 10-nanometer process, a technology that Samsung has confirmed it has successfully developed for next-generation high bandwidth memory (HBM) chips. Vice Chair Jun Young-hyun, who oversees Samsung’s semiconductor division, recently visited the U.S. and met with Nvidia, underscoring the company’s commitment to closing the competitive gap and securing new HBM chip orders.
Phase 4 is projected to achieve a monthly capacity of 80,000 wafers, which will account for 40% of P4’s total capacity of 200,000 12-inch wafers. Although not officially confirmed, there are indications that Samsung is also contemplating the resumption of construction for its fifth plant at the Pyeongtaek Campus, referred to as P5. Groundwork for P5 began in 2023 but was halted early last year. This facility is expected to require an investment of over 30 trillion won and is designed to be a complex fabrication site for DRAM, NAND flash, and foundry production.
A Samsung official stated, “We are continuously reviewing various scenarios for resuming construction of our facilities.” Meanwhile, SK hynix is also expanding its production capacity. The chipmaker is on track to complete construction of its new M15X plant in Cheongju later this year. This facility will produce fifth-generation 10nm-class DRAM chips for next-generation HBM4 products, with a planned monthly capacity of approximately 90,000 wafers. Additionally, SK hynix is investing in a new back-end production facility, named “P&T 7,” also located in Cheongju, which will enhance packaging capabilities to improve the performance and energy efficiency of advanced chips.
The DRAM market is expected to remain robust in the latter half of the year, driven by demand for HBM chips, which are crucial for powering AI processors. According to the Export-Import Bank of Korea, the global AI semiconductor market is projected to experience significant growth.
**FAQ Section:**
**Q: Why are South Korean semiconductor companies increasing investments in AI chip production?**
A: South Korean semiconductor firms are ramping up investments due to strong growth forecasts in the AI chip market, which is driving demand for advanced memory solutions.
