Samsung expands Pyeongtaek hub as it predicts memory demand will surge through 2028
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Samsung is building a major semiconductor complex in Pyeongtaek, South Korea, to meet rising demand for memory chips used alongside the GPUs that run generative AI models. According to MIT Technology Review, three fabs already operate around the clock, a fourth is coming online, and construction of a fifth, halted during a 2024 drop in memory demand, resumed as the AI boom lifted demand. Samsung predicts that demand will continue rising through 2028.
MIT Technology Review describes the expansion as Samsung’s attempt to regain the lead in high-bandwidth memory, while South Korean rival SK Hynix has pulled ahead in the market connected to Nvidia’s AI accelerators. The complex covers an area roughly the size of New York City’s Central Park and employs thousands of workers in construction and fab operations.
Why it matters · editorial interpretation
The expansion directly connects demand for AI infrastructure with Samsung’s industrial planning as the company tries to regain ground in high-bandwidth memory against SK Hynix’s lead linked to Nvidia’s accelerators. The restart of the fifth fab also illustrates how expectations of demand through 2028 are influencing long-term semiconductor investment.
Sources
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