Samsung Electronics Reportedly to Build New Packaging Plant in Gwangju for the First Time in 35 Years

According to a report by Korean media citing industry sources, Samsung Electronics is planning to build an advanced semiconductor packaging plant in Gwangju, South Korea. This will be the company's first new packaging facility in 35 years, since the establishment of its Onyang plant. The move is seen as a decisive investment by Chairman Lee Jae-yong to seize the "super-cycle" of AI semiconductors. The report states that the project will be discussed on the 29th at the Blue House meeting of major corporate groups chaired by President Lee Jae-myung.

Breaking the Power Bottleneck: Gwangju as an "AI Packaging Hub"

The project is said to include front-end processes for DRAM and NAND flash memory, marking another major layout 11 years after the groundbreaking of the Pyeongtaek campus.

Industry insiders point out that the core reason Samsung chose Gwangju is that power and water resources in the Seoul metropolitan area are nearing their limits. Samsung initially considered renovating its Onyang campus to expand packaging capacity. However, AI semiconductor production is extremely power-intensive. The Honam region (including Gwangju) is the most abundant area in South Korea for solar and offshore wind energy, offering significantly greater power supply flexibility than the capital region. 

Furthermore, President Lee Jae-myung explicitly stated at his first anniversary press conference that if companies invest in local regions, the government will provide support. The policy direction also encouraged Samsung to choose Gwangju.

Considering power supply, balanced regional development, the local industrial ecosystem, and government incentives, Gwangju was ultimately selected as the second packaging hub.

Samsung's Supply Can't Meet Demand: Advanced Packaging as the Key in the AI Battlefield

Samsung Electronics has already begun supplying HBM4 to NVIDIA and is collaborating with global AI chip companies such as AMD and Broadcom. However, Samsung's Cheon'an campus is almost the only facility in South Korea capable of producing 2.5D advanced packaging. Even with Samsung's plans to continue expanding the Cheon'an production line by next year, industry analysis suggests that its capacity is nearing saturation in the face of surging global orders. An industry insider commented: "Samsung Electronics is building a new plant in Gwangju to dramatically increase its packaging capacity, which has reached its limit, thereby seizing a critical position in the global AI supply chain."

The report analyzes that the completion of this new base is expected to allow Samsung Electronics to actively respond to demand from global tech giants, including NVIDIA, and solidify its position in the foundry market. With its unique, fully integrated process system that significantly shortens overall delivery times, Samsung holds a distinct competitive advantage over TSMC in supply chain efficiency. Samsung Electronics is expected to become an effective alternative for large tech companies looking to diversify their packaging supply risks and reduce their dependence on TSMC.

It is reported that this investment plan will be on the agenda during the meeting on the 29th, presided over by President Lee Jae-myung and attended by heads of major conglomerates, including Samsung.