SEOUL, November 12 (AJP) - Samsung Electronics broke ground Thursday on an advanced chip packaging facility in Asan, South Chungcheong Province, as part of a 46 trillion won ($34 billion) investment plan aimed at expanding production capacity for high-bandwidth memory (HBM) used in artificial intelligence servers.
President Lee Jae-myung and Samsung Electronics Chairman Lee Jae-yong attended the groundbreaking ceremony at the company's Onyang campus, marking the launch of the government's Chungcheong regional megaproject.
The investment includes 6 trillion won for manufacturing facilities and another 40 trillion won for advanced equipment, with plans to establish five HBM packaging lines and expand the campus's total floor area from 270,000 to 420,000 square meters.
Samsung's semiconductor chief Jun Young-hyun outlined a target of June 2028 for the new production line to begin operations, reportedly a year ahead of the original schedule. An industry source contacted by AJP said the reported acceleration was difficult to independently verify.
The expansion comes as AI chipmakers face growing demand for HBM, which requires sophisticated packaging processes to stack and connect multiple memory chips.
Samsung said during its third-quarter earnings briefing that negotiations over its 2027 HBM supply volumes had been completed, although customers continued to request additional shipments.
Chairman Lee said the Onyang campus, which began operations in 1991 as a semiconductor assembly and testing facility, would be transformed into an advanced HBM packaging hub.
President Lee pledged government support for the projects, emphasizing the need to ensure that large-scale industrial investments also benefit local businesses and communities.
The groundbreaking is part of a broader 144 trillion won investment push by Samsung affiliates across the Chungcheong region, spanning semiconductors, displays, batteries and electronic components.
Copyright ⓒ Aju Press All rights reserved.