Samsung to Invest 140 Trillion Won in AI Materials and Components in Chungcheong

Samsung Group plans to invest approximately 140 trillion won in the Chungcheong region to develop it into a strategic hub for key materials and components in the age of artificial intelligence (AI). The investment will focus on enhancing the group's production and research capabilities in display technology, high-bandwidth memory (HBM), next-generation batteries, and AI server package substrates, aiming to strengthen global supply chain competitiveness.

Lee Cheong, CEO of Samsung Display, stated on July 2 during the 'Chungcheong Advanced Industry Development Vision National Report Meeting' in Asan, "As the industrial paradigm shifts into the AI era, the demand for displays, HBM, batteries, and AI server package substrates is skyrocketing. We will invest about 140 trillion won to establish Chungcheong as a leading center for materials and components."

The investment will concentrate on Samsung's next-generation growth engines. Samsung Display will invest 67 trillion won to complete a future display cluster in Asan and Cheonan. Samsung Electronics will allocate 56 trillion won to establish a next-generation HBM production base in Onyang and Cheonan, while Samsung SDI will invest 9 trillion won to create a next-generation battery mother line in Cheonan. Samsung Electro-Mechanics plans to invest 8 trillion won in Sejong to expand production capacity and R&D for AI server package substrates.

The goal is to transform Chungcheong into a global hub for advanced materials and components, creating 250,000 quality jobs.

This investment is seen as a strategy to consolidate the supply chain for key components in the AI era in the Chungcheong region. Displays, HBM, batteries, and package substrates are considered essential components for next-generation industries such as AI servers, data centers, robotics, and humanoids. By concentrating production and R&D functions in one area, the strategy aims to ensure synergy among affiliates and stability in the supply chain.

In particular, Samsung Electronics plans to convert its existing Onyang package production line into a cutting-edge HBM production base, while modernizing and expanding HBM-related facilities in Cheonan. Lee emphasized, "We will transform the Onyang and Cheonan areas into a global HBM hub by upgrading the Onyang line, which previously focused on simple assembly and testing, into a next-generation HBM fab." This move aims to enhance competitiveness in advanced packaging amid fierce competition in the expanding AI semiconductor market.

Samsung Display is also making significant preemptive investments in the display sector. Following the existing Asan Plant No. 1, it plans to expand production lines at Plant No. 2 to seize opportunities in the future display market. Lee noted, "Over the past 20 years, the market has grown more than tenfold due to advancements in internet and mobile technologies. In the AI era, with the emergence of smart glasses and various edge devices, we expect the market to grow again by more than tenfold over the next decade." Specifically, the company plans to expand high-value-added OLED lines for smartphones, IT, XR, automotive, humanoids, and wearables in the Asan area.

Samsung has been developing the Chungcheong region as a core production base for materials and components since the 1990s, having invested 102 trillion won and employed 33,000 people to date. With the addition of this 140 trillion won investment plan, Chungcheong is expected to solidify its position as a leading center for AI-related component production and research and development for Samsung.