Samsung Resumes $22B Fab Amid DRAM and AI Chip Boom

Samsung Electronics is reportedly considering resuming construction of its Pyeongtaek Line 5 (P5) semiconductor facility—its most advanced manufacturing site to date—after a two-year suspension. The renewed momentum is largely driven by the company's recent progress in high-bandwidth memory (HBM) and next-generation DRAM technologies, along with soaring global demand for AI-related chips.

Industry sources revealed on July 1 that Samsung executives are in active discussions regarding capital investment and construction plans for the P5 fab. Some personnel have already been dispatched to the site to organize building materials, signaling early preparations for a full-scale restart. Observers expect major equipment deployment to begin as early as October. A Samsung executive confirmed: “We are currently evaluating various options to resume the P5 project.”

The P5 site initially broke ground in 2023 but was abruptly halted in early 2024. This pause was largely attributed to a significant downturn in Samsung's memory business, which saw the semiconductor division's revenue fall by 32.3% year-on-year to KRW 66.59 trillion in 2023, alongside an operating loss of KRW 14.88 trillion. Faced with these setbacks, Samsung chose to reassess its product roadmap rather than commit to further investment.

However, a technological rebound in key offerings such as 6th-generation 10nm-class DRAM and 5th-generation HBM3E has strengthened the company's competitive edge and revived prospects for the P5 site. The resurgence of AI applications and the corresponding demand for high-performance chips has further boosted the urgency of expanding capacity.

The P5 fab will be Samsung's fifth semiconductor plant within its Pyeongtaek campus, operated by its Device Solutions division. With dimensions of approximately 650 meters in length and 195 meters in width, the mega-facility is expected to receive an investment exceeding KRW 30 trillion (approximately USD 22.1 billion). It is planned to function as a multi-fab complex, housing production lines for DRAM, NAND flash, and custom chips.

According to estimates by the Export-Import Bank of Korea, the global AI semiconductor market is projected to grow from USD 41.1 billion in 2022 to USD 133 billion by 2028—coinciding with the expected operational launch of the P5 project.