Samsung May Build Advanced Chip Packaging Plant in Gwangju

Samsung is weighing plans to build an advanced semiconductor packaging facility in Gwangju, a city in southwestern South Korea, according to Korea Economic Daily (via Reuters). If anything, that means Samsung wants to strengthen its chip ecosystem as demand for AI-related components are at all-time-high.

Samsung could unveil Gwangju chip investment plan later this month

The investment plan could be unveiled during a June 29 meeting between President Lee Jae Myung and leaders of the country’s largest conglomerates, the report said, citing unnamed industry sources. The meeting will reportedly focus on a major shift in growth strategy and include Samsung Chairman Jay Y. Lee and SK Group Chairman Chey Tae-won.

Samsung declined to comment on the report, while the presidential office said corporate investment decisions remain up to individual companies. Still, the potential project would mark another step in Samsung’s effort to expand its capabilities in advanced chip packaging. This is a critical area in the rapidly evolving AI semiconductor supply chain.

Advanced packaging is becoming more important as chipmakers look to boost performance by integrating multiple chips into a single package. Demand has surged for high-bandwidth memory chips, or HBM, which are widely used in AI servers alongside processors from companies like Nvidia, as the AI boom continues to reshape the industry.

Samsung has been ramping up its presence in the HBM segment to challenge market leader SK Hynix. Its customers include major AI players such as Nvidia, AMD, and Google. In May, the company said it had begun shipping samples of its latest 12-layer HBM4E chips, signaling its intent to compete more aggressively.