Global assessments of the primary bottlenecks in artificial intelligence (AI) infrastructure expansion have diverged. With contrasting views on capital liquidity and supply shortages, Samsung Electronics and SK Hynix are ramping up their equipment investments to confront uncertainties in the semiconductor market head-on.
According to industry sources, Hock Tan, CEO of Broadcom, recently stated at a conference in Singapore that "the biggest constraint on AI expansion is not the production capacity of power or semiconductors, but capital itself." He warned that the significant financial burden of AI-related investments for big tech companies could lead to slower-than-expected market growth.
In contrast, Sanjay Mehrotra, CEO of Micron, a major memory supplier, pointed out that "we can currently supply only 50-66% of the volume demanded by our key customers," highlighting a severe supply shortage in the market.
Global investment banks have analyzed that the simultaneous occurrence of capital constraints and advanced memory shortages will deepen market polarization. Morgan Stanley noted that "the expansion of AI infrastructure has entered a phase of validating capital expenditure efficiency," adding that the benefits will continue to favor top-tier manufacturers that have secured their supply chains over short-term capital concerns.
Amid market volatility, Samsung Electronics and SK Hynix plan to take proactive measures to seize supply leadership and mitigate risks through expansion. Samsung is working to accelerate the timeline for equipment installation at its Pyeongtaek 5 campus (P5) by more than a quarter from its original schedule. The equipment installation, initially planned for the third quarter of next year, is now targeted for the second quarter, with detailed delivery schedules being closely discussed with key suppliers.
Following the decision to commence structural work on P5 at a temporary management committee meeting last November, the company has significantly increased the number of technical personnel on-site since December. The workforce at the Pyeongtaek campus has grown from around 50,000 to approximately 70,000-80,000.
Samsung has also secured funding, with the Korea Development Bank and five major commercial banks approving a loan of 2.5 trillion won in February. The company plans to focus this funding on essential infrastructure development, such as the P5 substation and the introduction of extreme ultraviolet (EUV) lithography equipment. Alongside the P5 construction, Samsung is also simultaneously advancing the establishment of 'P5 Fab 2' to expedite the completion of a large-scale advanced DRAM production facility in Pyeongtaek.
SK Hynix is also set to significantly increase the wafer input volume at its Cheongju M15X fab, a key site for next-generation memory production, to 80,000 wafers per month. This early ramp-up of the new fab aims to stay ahead of the surging demand for high-bandwidth memory (HBM) and next-generation DRAM.
The completion of the first phase of the Yongin semiconductor cluster fab is also nearing. In February, the company decided to invest an additional 21.6 trillion won in the first phase, officially moving the opening of the first cleanroom from May next year to February.
An industry insider remarked, "There is no disagreement that the company that resolves the severe shortage of advanced memory supply will dominate the market in the future," adding that with the government recently establishing an organization dedicated to supporting semiconductor infrastructure, the operation of new fabs is expected to gain further momentum.
* This article has been translated by AI.
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