Samsung to Expand HBM Production, New Facility Set for 2027

On Tuesday, November 12, a senior executive from Samsung Electronics announced plans to expand its semiconductor packaging facility in South Chungcheong Province, Korea, aiming to increase the production of High Bandwidth Memory (HBM) chips.

In collaboration with local government officials, Samsung will transform an underutilized LCD display plant in Tianjin, approximately 85 kilometers south of Seoul, into a state-of-the-art semiconductor manufacturing facility. The provincial and city authorities have agreed to provide both administrative and financial support to ensure the project moves forward as planned.

The new facility is slated for completion by December 2027 and will feature advanced HBM chip packaging lines. HBM chips play a crucial role in AI computing, driving significant demand in the market.

Packaging, a key stage in semiconductor production, protects chips from mechanical and chemical damage. Samsung expects the upgraded Tianjin facility to help it regain a competitive edge in the global semiconductor market, where it has recently fallen behind domestic rival SK Hynix in the HBM sector.

Previously, delays in Samsung's HBM3E product launch for Nvidia were attributed to quality issues. However, during a recent earnings call, Samsung's Executive Vice President of Storage Business, Jaejune Kim, indicated that the company is now on track to ship its most advanced and high-margin HBM3E chips to customers by the fourth quarter, noting "meaningful" progress in certification with key clients.