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Samsung Expands Advanced Chip Packaging Plant in Gwangju Amid AI Capacity Crunch

Samsung Expands Advanced Chip Packaging Plant in Gwangju Amid AI Capacity Crunch

July 7, 2026
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Samsung Expands Advanced Chip Packaging Plant in Gwangju Amid AI Capacity Crunch

Rising demand for AI chips is stretching semiconductor giants' production capacity. Samsung Electronics Chairman Lee Jae-yong acknowledged today that current capacity cannot keep up with market needs. To address this, Samsung plans to build a new advanced packaging plant in Gwangju, South Korea, aiming to significantly boost AI chip output.

Beyond the Gwangju packaging facility, Samsung has outlined a broader investment strategy. The company intends to invest in robotics in Gumi, expand its biopharma presence in Incheon, and explore battery production in Ulsan alongside semiconductor substrate manufacturing in Busan—a multi-front push to diversify growth.

Samsung Accelerates Its Challenge to SK Hynix in the Premium Memory Market

In the AI hardware space, high-bandwidth memory (HBM) is now critical for computing performance. Samsung is ramping up investment and R&D in HBM to challenge SK Hynix's current lead and reclaim dominance in high-end memory chips.

Leveraging its strong R&D foundation, Samsung has made headway in the downstream supply chain. Its AI chip clients now include tech giants like NVIDIA, AMD, and Google. In May, Samsung became the first to ship 12-layer HBM4E memory samples to customers, accelerating the commercial race for next-gen AI memory.

A Diversified Blueprint for Future Growth

Amid intensifying global tech competition, Samsung is spreading its bets across multiple cutting-edge sectors. By investing concurrently in robotics, biopharma, and power batteries, the company aims to build a more resilient and diversified industrial portfolio.

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