A Day in the Life at Samsung's P5 Semiconductor Plant in Pyeongtaek

At 3:45 a.m., the Samsung Electronics semiconductor campus in Pyeongtaek is already brightly lit, despite the darkness of early morning.

Workers, wearing safety helmets with their names and blood types, gathered in groups as they headed to the site ahead of their 5 a.m. shift. A makeshift snack stall and coffee stand at the entrance of P5 opened early, where workers filled up on kimbap and fish cakes while holding cups of coffee as they entered the site.

Hwang, 60, who has been working here for six months, said, "Waking up early every day is still tough for me," adding that he walks to the site even in the heat.

Park, in his 40s and working at P5 for about a year, noted, "Once you enter, you have to work for a long time, so I eat a hearty meal before coming in. Nowadays, I pay extra attention to my health due to the heat."

Samsung Electronics is accelerating the construction of P5 in response to the growing demand for artificial intelligence (AI) memory, moving the operational target from 2030 to 2028 to secure next-generation memory production capacity sooner.

AI semiconductors are evolving rapidly, with new generations emerging within a year. In contrast, semiconductor plants take years to build, install equipment, stabilize processes, and begin mass production. Waiting until demand is confirmed could mean missing the market opportunity.

The early mornings at the P5 site reflect Samsung's efforts to catch up to the two-year timeline it has accelerated.

One of the most noticeable structures at the site is a large overbridge under construction between P4 and P5.

Measuring approximately 360 meters, this is not a pedestrian bridge but a dedicated passage for semiconductor wafers to move between P4 and P5 as needed during processing.

A Samsung Electronics official explained, "The structure currently under construction is an overbridge connecting P4 and P5 for wafer transportation. It is not a pedestrian walkway and is a significant facility within the Pyeongtaek campus."

The length is three times that of the approximately 120-meter overbridge installed at Samsung's Hwaseong campus.

Semiconductor production involves a complex process where a single wafer undergoes numerous equipment and processing steps. Delays in moving wafers to the next equipment after completing a specific process can reduce production efficiency.

Ultimately, how quickly and accurately wafers are moved to the necessary processes directly impacts the fab's productivity.

Connecting P4 and P5 with the overbridge allows the two plants to operate not just separately but also to share wafers based on processing needs, functioning as a unified production system.

The official added, "We are creating a pathway for wafers to move back and forth as needed based on the processes performed at P4 and P5."

The entire Pyeongtaek campus spans approximately 2.89 million square meters, comparable to the size of Yeouido, and can accommodate six fabs, including P1 through P4 and FAB1 and FAB2 of P5.

The history of the Pyeongtaek campus began over a decade ago.

Samsung Electronics broke ground on its first Pyeongtaek plant in May 2015, based on an initial investment plan of 15.6 trillion won. As investments expanded, the total investment amount grew to about 30 trillion won.

In July 2017, mass production of fourth-generation 64-layer V-NAND began, and in 2018, construction of a second production line commenced. By 2020, advanced DRAM production also started.

Since then, Pyeongtaek has established itself as a key production hub for Samsung's semiconductor business.

The scale of P5 is larger than previous investments in Pyeongtaek.

According to government data, over 60 trillion won is expected to be invested in the construction of P5 across all phases. Samsung plans to utilize P5 as a core hub for next-generation memory production, including HBM.

A Samsung C&T official overseeing the P5 construction stated, "P5 differs from past projects in terms of scale and complexity. It is not just about completing the building on time; ensuring safety while maintaining quality and productivity and responding quickly to changing circumstances is crucial."

The constant movement of cranes and construction equipment in Pyeongtaek is reflected in domestic investment indicators.

In the second quarter of this year, domestic facility investment increased by 13% compared to the same period last year, with machinery investment rising by 15%. In June alone, facility investment surged by 21.7%, and machinery investment by 22.2%, driven by increased spending on semiconductor manufacturing equipment.

P5 exemplifies how AI is rapidly boosting domestic semiconductor investment.

SK Hynix is also accelerating its production facility expansion.

The first fab in the Yongin semiconductor cluster has surpassed 70% completion, while an additional investment of 35.2 trillion won is planned for the second Yongin fab, Y2, and 19.1 trillion won for the Cheongju M17 fab.

The total investment for these two projects amounts to 54.3 trillion won, which is about 45% of SK Hynix's equity of 120.7 trillion won.

The simultaneous large-scale investments by Samsung and SK Hynix stem from the time lag between the AI industry and semiconductor manufacturing.

While AI accelerators can see new generations emerge within a year, building a semiconductor fab takes years from construction to equipment installation, process stabilization, and mass production.

If production capacity is increased only after demand is confirmed, the companies risk missing the market response window.

As a result, the competition between the two companies has expanded beyond simply developing better memory to securing production capacity ahead of future demand.

An Ki-hyun, secretary general of the Korea Semiconductor Industry Association, stated, "Investing increases manufacturing facilities and production scale, which helps secure market leadership. If competitors invest while you do not, you will ultimately lose market dominance."

However, he noted that P5 alone is unlikely to significantly alter the competitive landscape between Samsung and SK Hynix.

Both companies are making large-scale investments, so the focus will shift from the size of the investment itself to how quickly the newly secured production capacity can be translated into products and revenue.

Another reason semiconductor companies are rushing to invest is the rapid expansion of AI-driven memory demand.

The initial AI memory market grew around HBM, with SK Hynix taking the lead while Samsung Electronics is catching up with next-generation products like HBM4.

Recently, AI demand has also spread to general-purpose DRAM and NAND flash.

As Samsung, SK Hynix, and Micron increase their production share of HBM and high-value server products, the supply capacity for general-purpose DRAM is decreasing, while AI servers consume large amounts of DRAM, increasing supply pressure.

Market research firm SigmaIntel projects that global semiconductor sales will reach approximately $1.59 trillion this year, with memory accounting for about 60%. DRAM sales are expected to increase by over 300%, NAND by about 250%, and the HBM market is projected to exceed $100 billion.

Omdia has also raised its forecast for semiconductor market growth to 94.1%, predicting that bottlenecks in HBM, advanced packaging, and cutting-edge processes will continue until 2027.

Counterpoint Research anticipates that the share of server sales in total memory revenue will rise from 37% last year to 56% this year.

While there are differences in how various research firms define and aggregate the market, they all agree that AI demand is lifting not just HBM but also DRAM and NAND.

In the second quarter, Samsung Electronics recorded a 39% market share in global DRAM sales, while SK Hynix's DRAM sales are estimated to have more than tripled compared to the same period last year.

In this context, latecomers like China's CXMT and Taiwan's Nanya are also rapidly increasing production.

As the existing memory trio of Samsung, SK Hynix, and Micron focus their production capacity on HBM and high-value server products, they are being challenged in the general-purpose memory market.

AI has not eliminated the traditional cycles of the memory industry. If supply shortages lead to price increases, investments will rise, and increased production capacity will eventually lead to supply growth and price declines.

However, in the AI era, the cost of waiting until demand is certain has become significantly higher.

At the P5 construction site, thousands of workers are installing structures, electrical systems, and plumbing while organizing spaces around equipment.

A female worker named Park, met on her way home, remarked, "There are so many people inside that I can't even count them all."

Another worker added, "The site is extremely busy right now."

A subcontractor employee, Kim, installing partitions around equipment, said, "We don't know if the surrounding equipment is for 2nm or 3nm processes, but we do know that the equipment is very expensive, so we are always told to be careful."

He emphasized, "From our perspective, it's ultimately a construction site. It's important to do our job properly without damaging or interfering with the equipment."

The site operates under a structure where Samsung Electronics manages the operations, and Samsung C&T oversees major construction projects, with first-tier contractors, subcontractors, and specialized construction companies performing their respective tasks.

This multi-tiered structure also affects how workers are impacted when work is halted due to the heatwave.

A site manager with long experience in Samsung's semiconductor business noted, "If you belong to a first-tier contractor like us, you can adjust the schedule if you miss a day's work. For subcontractor workers, missing a day can directly lead to a loss of income."

This summer, one of the biggest variables at the P5 construction site is the heatwave.

Samsung C&T has protocols to halt high-risk work when the perceived temperature reaches 35 degrees Celsius, and to prohibit outdoor work when it exceeds 38 degrees.

While these measures are for safety, they mean that even if workers start early in the morning, there may be days when work must be stopped after just a few hours. This can lead to income loss for some workers who are paid based on daily wages.

Heat-related illnesses have also been reported on site.

One worker mentioned, "Just yesterday, five people collapsed due to heat-related issues, and ambulances were constantly coming and going."

Experts explain that the heat felt by workers on the construction site can be much more intense than the temperatures reported by meteorological authorities.

Choi Yong-sang, a professor of climate and energy systems engineering at Ewha Womans University, stated, "The temperatures reported by meteorological authorities are based on background air temperature measured under open and well-ventilated conditions, while the actual working environment can be much harsher."

In summer, asphalt surface temperatures can exceed 60 degrees Celsius, and heated concrete structures and poorly ventilated spaces can increase workers' heat exposure. The combination of heavy work clothing, safety helmets, and crowded working conditions exacerbates heat stress.

Professor Choi emphasized, "We cannot lower the external temperature itself; ultimately, we need to reduce workers' exposure and vulnerability to lower heat stress."

To secure as much working time as possible while avoiding the heat, the start of the workday has been moved to early morning.

The 360m overbridge for wafer transportation between P4 and P5 is gradually taking shape. Below it, cranes and construction vehicles are in motion, and thousands of workers are heading to their respective tasks.

AI has accelerated not only the operational schedule for P5 but also the daily rhythm of the construction site.

At 3:45 a.m. the next day, the lights at the P5 construction site will be on again.

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