Samsung expands chip production – rising AI demand drives investment

Samsung Electronics is expanding its semiconductor manufacturing by adding a new chip production line at its Pyeongtaek plant, driven by the surging demand for memory chips from artificial intelligence (AI) applications. The new "P5" line is scheduled to commence regular operations in 2028 and is part of a long-term investment plan of approximately 450 trillion won (around $310 billion USD) over the next five years. Samsung emphasized the critical need to build additional production capacity early to meet the rising demand for high-performance memory solutions for AI servers, data centers, and other data-intensive applications. This expansion comes amid significant price increases for memory chips—up to 60% since September—highlighting growing market shortages. By strengthening its capacity, Samsung reinforces its position as the world's leading memory chip provider and signals to the industry that manufacturers must adapt their capacity and supply chain strategies to keep pace with the growing demand for powerful DRAM and HBM solutions