Samsung Pauses P5, Accelerates P4 Line Expansion

In recent developments, Samsung Semiconductor is strategically adjusting the construction timeline of its P4 facility in Pyeongtaek, South Korea, with a focus on expediting the PH2 production line. As part of this initiative, Samsung has temporarily suspended the establishment of a new production line for its P5 wafer plant.

Pyeongtaek stands as a pivotal semiconductor manufacturing center for Samsung, serving as a key hub for its wafer foundry operations and storage chip production. Presently, Samsung operates three functional wafer plants in Pyeongtaek, namely P1, P2, and P3, with the ongoing construction of P4 and P5 wafer plants.

According to market sources, construction activities for Samsung's P5 wafer plant in Pyeongtaek have been temporarily halted. Resources initially allocated to the P5 plant are now redirected to accelerate the construction of the PH2 production line within the P4 wafer facility. Upon completion, this state-of-the-art cleanroom is slated to cater specifically to wafer foundry services, as Samsung endeavors to enhance its foundry capabilities and attract a broader clientele, potentially competing with industry leader TSMC. Additionally, the P4 wafer plant will feature the establishment of the PH3 production line, dedicated to the manufacturing of storage chips such as DRAM.

This strategic adjustment in construction plans aligns with Samsung's proactive stance, anticipating a surge in market demand for these products in the near future. It is noteworthy, however, that Samsung had previously communicated the suspension of the P5 wafer plant for inspection purposes. Analysts suggest that, given the semiconductor market's recent downturn, Samsung is likely adjusting the pace of the P5 wafer plant construction. The broader market impact has prompted Samsung to forego bonuses for semiconductor department executives in 2024, underscoring the challenges faced during this period.