Samsung Electronics is reportedly evaluating the construction of an advanced semiconductor packaging plant in Gwangju, a city in southwestern South Korea, according to a South Korean newspaper report. The plan is anticipated to be revealed at a meeting scheduled for June 29 between South Korean President Lee Jae Myung and senior executives from the country's largest conglomerates, the report said, citing unnamed industry sources.
The June 29 meeting, which the report said will be framed around a "major shift in growth strategy," is expected to include Samsung Electronics Chairman Jay Y. Lee and SK Group Chairman Chey Tae-won. The newspaper said Samsung would present its investment intentions there. Samsung Electronics declined to comment when asked. The presidential office responded that decisions on corporate investments are for companies to make.
The potential Gwangju facility would be oriented toward advanced chip packaging, a segment increasingly central to the AI chip supply chain. Advanced packaging is used to integrate multiple chips into a single package in pursuit of higher performance, and demand for high-bandwidth memory - which stacks multiple DRAM chips vertically and is commonly used alongside AI processors - has been especially strong, the report noted. HBM is widely used in AI servers.
The report additionally characterized the possible investment as a signal that Samsung may be accelerating capital spending in anticipation of an industry upswing driven by AI demand. It highlighted that advanced packaging capability is a strategic area for chipmakers seeking performance gains and that HBM demand is a key component of that trend.
Samsung counts major AI players among its customers, including Nvidia, AMD and Google, all of which are cited in the report as drivers of demand for advanced memory used in AI servers and processors. The report also noted Samsung's intent to expand its footprint in the HBM market as a challenge to the current market leader, SK Hynix. In May, Samsung said it had started shipping samples of its latest HBM product, the 12-layer HBM4E, to customers.
Details on the scale, timing or financial scope of the Gwangju investment were not provided in the report. Observers will be watching the June 29 meeting for any formal announcement of an investment plan from Samsung or other conglomerates.
Contextual note - The information above is based on the report referenced and statements included therein; Samsung has not confirmed the plan and the presidential office emphasized that investment choices remain with the companies.