Samsung Electronics has announced plans to increase the production of high-bandwidth memory (HBM) chips by expanding its semiconductor packaging facility in Chungcheongnam-do, South Korea. This decision is part of a memorandum of understanding signed with the local government for the transformation of an underutilized liquid crystal display factory in Cheonan into a semiconductor manufacturing facility.
The new plant is expected to be completed by December 2027 and will feature cutting-edge HBM chip packaging production lines. HBM chips play a critical role in artificial intelligence computing, leading to high demand for these components. In semiconductor production, packaging is crucial for protecting chips from mechanical and chemical damage.
Samsung aims to regain its competitive edge in the global semiconductor market with this upgrade. Currently, the world's largest memory chip manufacturer is trailing its domestic rival, SK Hynix, in the HBM sector. Quality issues have delayed Samsung's plans to supply its latest fifth-generation HBM3E products to Nvidia.
