Samsung Elec considers building chip packaging plant, Economic Daily says


FILE PHOTO: A flag bearing the logo of Samsung Electronics flutters at the company's office building in Seoul, South Korea, April 15, 2025. REUTERS/Kim Hong-Ji/File Photo

SEOUL, June 9 (Reuters) - Samsung Electronics ⁠is considering the construction of an advanced semiconductor packaging facility in the ⁠southwestern South Korean city of Gwangju, the Korea Economic Daily said ‌on Tuesday.

Here are some details:

• Samsung is expected to unveil the investment plan at a meeting between South Korean President Lee Jae Myung and the heads of the country's largest conglomerates on June ​29, the newspaper reported, citing unnamed industry sources.

• ⁠The meeting, to be held at ⁠the presidential office under the theme of a "major shift in growth strategy," is expected ⁠to ‌include Samsung Electronics Chairman Jay Y. Lee and SK Group Chairman Chey Tae-won.

• Samsung Electronics declined to comment. The presidential office said corporate ⁠investment decisions are matters for companies to determine.

• The move ​would mark one of ‌Samsung's latest efforts to strengthen its advanced chip packaging capabilities, a critical ⁠part of ​the AI chip supply chain as demand surges for high-bandwidth memory (HBM) chips used in AI servers.

• The newspaper added that the investment would be seen as a sign that the ⁠company is seeking to accelerate spending ahead of ​what many expect to be an upswing in the chip sector driven by AI demand.

• Advanced packaging has become increasingly important as chipmakers seek to improve performance by ⁠integrating multiple chips into a single package. Demand has been particularly strong for HBM, which stacks multiple DRAM chips vertically and is used alongside AI processors from companies such as Nvidia.

• Samsung's customers include major AI players such as Nvidia, AMD ​and Google, which are driving demand for advanced memory ⁠chips used in AI servers and processors.

• Samsung has been expanding its presence in ​the HBM market as it seeks to challenge ‌market leader SK Hynix. In May, the ​company said it had begun shipping samples of its latest HBM chip, the 12-layer HBM4E, to customers.

(Reporting by Heekyong Yang; Editing by David Holmes)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Others Also Read