Samsung Electronics and SK Hynix are set to transform the Chungcheong region into a key production hub for artificial intelligence (AI) semiconductors. As the competition for high-bandwidth memory (HBM) shifts from fine processing to packaging, both companies are making substantial investments focused on production and research and development (R&D) in this area. The Chungcheong region, encompassing Cheonan, Onyang, Asan, and Cheongju, is expected to become the core of South Korea's AI semiconductor backend ecosystem.
On July 2, Samsung and SK Hynix announced their investment plans during the 'National Report Meeting on Advanced Industry Development Vision' held at Samsung Display's Asan Campus. Samsung plans to invest a total of 140 trillion won in the Chungcheong region to establish it as a center for key materials and components in the AI era. Samsung Display will invest 67 trillion won in Asan and Cheonan to create a future display cluster, while Samsung Electronics will allocate 56 trillion won to establish a next-generation HBM production base in Onyang and Cheonan. Additionally, Samsung SDI will invest 9 trillion won in Cheonan to build a next-generation battery mother line, and Samsung Electro-Mechanics will invest 8 trillion won in Sejong to expand its production capacity and R&D for AI server package substrates.
Notably, Samsung Electronics plans to convert its existing Onyang packaging line into a state-of-the-art HBM fab and upgrade its Cheonan facilities to focus on HBM-compatible equipment. This strategy aims to enhance global competitiveness in HBM by transitioning the existing assembly and testing-focused backend production base into a core process for AI semiconductors.
Lee Jae-yong, Chairman of Samsung Electronics, remarked during his welcoming speech, "Thirty years ago, Asan was a vast vineyard, but now it has become the world's largest display complex. Onyang is transitioning from a general semiconductor backend center to a cutting-edge HBM fab, Sejong is evolving into a production base for AI server package substrates, and Cheonan is becoming a key manufacturing hub for next-generation batteries."
He emphasized, "The future's success hinges on the materials and components that drive AI, which is directly linked to Samsung's future. Chungcheong will achieve greater growth as a global hub for IT materials and components."
SK Hynix aims to develop Cheongju into a central hub for AI memory production and advanced packaging, planning to invest a total of 100 trillion won there. The company will allocate 80 trillion won to its NAND production facility, M17, and 20 trillion won to advanced packaging facilities like P&T7. P&T7 is expected to be completed by the end of 2027, while M17 is set to begin construction next year, with operations targeted for the first half of 2029.
Kwon Oh-jun, CEO of SK Hynix, stated, "With the rapid expansion of AI services, NAND demand is increasing sharply, but supply is insufficient, necessitating a significant scale-up. Cheongju is the most efficient production base, equipped with infrastructure such as power, water, and land, and can connect with existing production lines." He added, "We will make Cheongju a key hub driving South Korea's memory semiconductor competitiveness and develop the Chungcheong region into a center for global AI semiconductor innovation."
Additionally, SK Group is pursuing the establishment of AI data center infrastructure. Starting with a 5-gigawatt (GW) scale, the company plans to gradually build AI data centers across the country, aiming for a total of 15 GW, including a 1 GW AI data center in the Chungcheong region.
This investment focuses on strengthening backend capabilities, which are crucial for semiconductor competitiveness in the AI era. As HBM and AI semiconductors rely on chip stacking and advanced packaging technologies for performance, the Chungcheong region, centered around Samsung's Onyang and Cheonan and SK Hynix's Cheongju, is expected to solidify its position as South Korea's AI semiconductor backend cluster.
* This article has been translated by AI.
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