Samsung Electronics announced it will add a new chip production line at its Pyeongtaek plant in South Korea to address surging demand from the artificial intelligence boom, with mass production set to start in 2028.
The new P5 plant forms part of the world’s largest semiconductor production complex. Construction on this facility had been postponed since late 2023 because of reduced demand for chips used in smartphones and personal computers. Samsung’s statement indicates that the company is now speeding up the expansion to ensure sufficient production capacity ahead of expected sustained growth in memory semiconductors.
This memory chip factory will produce components for both conventional applications and AI servers, according to a company spokesperson. Samsung Chairman Jay Y. Lee stated that the company will raise domestic investment, create quality jobs for young people and make even more efforts for a win-win with small and medium-sized, as well as venture companies.
The announcement coincides with strong performance in Samsung’s chip business, which achieved record quarterly revenue in the third quarter of 2025. This result stemmed from robust sales of HBM3E memory chips and server solid-state drives. Operating profit for the July-September period increased by 32.5 percent year-on-year, reaching 12.16 trillion won, equivalent to $8.5 billion, and exceeded market forecasts.
Samsung Electronics anticipates a mid- to long-term expansion in demand for memory semiconductors as the global AI era enters full scale, the company said. The Pyeongtaek expansion represents one element of Samsung’s comprehensive five-year investment plan, totaling 450 trillion won, or $310 billion, which was also announced on Sunday.
This investment plan encompasses the construction of facilities for AI chips, the enlargement of data centers oriented toward AI applications, and the establishment of production lines for next-generation batteries.
