Samsung Electronics held a groundbreaking ceremony on November 12 for its fifth line of high-bandwidth memory (HBM) packaging at the Asan Onyang Campus in South Chungcheong Province. The company aims to establish a post-processing hub connecting increased HBM DRAM production in Pyeongtaek to a new fab in Gwangju.
According to political and industry sources, Samsung chose Onyang due to its history of semiconductor assembly and testing since 1991. Nearby Cheonan already has HBM and wafer-level packaging (WLP) production facilities, allowing for the concentration of technology and personnel needed to turn processed chips into market-ready products.
A prime example of this division of labor is HBM4, which combines 10-nanometer sixth-generation (1c) DRAM for data storage with a 4-nanometer logic base die for signal control. The packaging line is where chips produced in memory and foundry processes come together as a single product. Industry experts believe that even with increased DRAM production in Pyeongtaek, the facilities for stacking and connecting chips must be able to handle the volume to meet customer demand for HBM. This is why investments in front-end processes in the Seoul area and back-end processes in Chungcheong are complementary.
The main facility in the Seoul area also has distinct roles for each factory. In Giheung, next-generation processes are being developed and validated before mass production, with Samsung planning to invest 20 trillion won in this R&D complex by 2030. Hwaseong hosts a DRAM production line and a foundry utilizing extreme ultraviolet (EUV) lithography technology, while Pyeongtaek is responsible for high-volume production of memory and advanced foundry products. Notably, Pyeongtaek's fourth line is expanding its production capacity for the 1c DRAM used in HBM4.
The timelines for expansions in Pyeongtaek and Onyang are aligned. Samsung plans to fully operationalize the fifth line at Pyeongtaek's second complex as a key HBM production hub by 2028. The newly launched fifth line in Onyang aims to begin operations by June 2028, a year earlier than initially planned. Samsung clarified that the 46 trillion won investment in Onyang is not just for the construction of one building but for establishing five HBM production lines on the campus, with 40 trillion won allocated for equipment.
The next expansion in the Seoul area will take place in Yongin. Samsung plans to gradually build six fabs in the advanced system semiconductor national industrial complex, with the first production line expected to start operations in October 2029. Investments in Honam are seen as a decision looking beyond that timeframe. In June, Samsung announced a 400 trillion won investment to construct two new fabs in Gwangju, with the then-vice chairman stating that the completion of the Pyeongtaek facility and the accelerated investment schedule in Yongin prompted the preparation for the new site.
The fabs in Gwangju will serve as front-end production facilities for creating circuits on wafers. If Samsung's plans proceed as intended, chip production will expand from southern Gyeonggi Province into Honam. Meanwhile, in Chungcheong, existing facilities will be leveraged to enhance both the scale and capabilities of advanced back-end processes. Cheonan will modernize its HBM-related facilities, while Onyang will shift its focus from general semiconductor assembly and testing to high-performance memory stacking. Industry observers note that the significance of Chungcheong lies not just in its geographical position between the two regions but in the evolution of the products completed there.
Lee Jae-yong, chairman of Samsung Electronics, emphasized at the groundbreaking ceremony, "Samsung Electronics will take on greater responsibility and actively promote mega-projects in Chungcheong, Honam, and Yeongnam for the irreplaceable success story of South Korea."
* This article has been translated by AI.
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