Samsung Launches Full Operation of Pyeongtaek Campus Line 3... "Maintaining Ultra-Gap in Semiconductor Business"

Giheung R&D Complex and Pyeongtaek Line 3 Operational... Strengthening R&D and Manufacturing Capabilities
Preparing for Pyeongtaek Line 4 Construction, Establishing Timely Response System for Future Semiconductor Demand
"Growing Pyeongtaek Campus into an Advanced Semiconductor Integrated Production Complex"

Samsung Electronics Pyeongtaek Campus view / Source=Samsung Electronics

[Asia Economy Reporter Kim Pyeonghwa] Samsung Electronics has officially started operations at Pyeongtaek Campus Line 3, the world's largest semiconductor production facility, and is moving to secure leadership in the future semiconductor market. Samsung Electronics is rapidly strengthening not only research and development (R&D) but also manufacturing capabilities to gain a competitive edge in the intensifying global semiconductor market. The company plans to maintain a super-gap in the market and strengthen its position through steady investment and expansion of foundry (semiconductor contract manufacturing) capacity.

Pyeongtaek Campus Generates 550 Trillion KRW in Production Effects... Basic Construction for Line 4 to Begin Soon

On the 6th, Samsung Electronics opened the Pyeongtaek Campus in Gyeonggi Province to the media. The Pyeongtaek Campus is a semiconductor production base equipped with foundries producing memory semiconductors and system (non-memory) semiconductors. The total area is 870,000 pyeong. It is a large complex equivalent to the combined size of Samsung Electronics' other semiconductor production bases, Giheung Campus (440,000 pyeong) and Hwaseong Campus (480,000 pyeong).

The Pyeongtaek Campus has been developed since 2015 and currently has three lines established. Lines 1 and 2 began operations in 2017 and 2020 respectively, and Line 3 started operations in July. Line 3 has established mass production facilities and has begun wafer input.

Products produced on Line 3 include memory semiconductors such as DRAM and NAND flash, as well as foundry products. Samsung Electronics plans to build advanced production facilities on Line 3 based on extreme ultraviolet (EUV) processes for DRAM and foundry processes below 5 nanometers according to future market demand.

Samsung Electronics has also started preparatory work for the construction of Line 4. Although the specific construction schedule and applicable products have not been decided, basic construction is underway to respond promptly to future semiconductor demand.

Samsung Electronics emphasized that since the Pyeongtaek Campus can accommodate a total of six lines, it can serve as a key forward base for South Korea to become a semiconductor powerhouse. The company aims to build a cutting-edge silicon cluster connecting Gyeonggi Province's Yongin, Hwaseong, Pyeongtaek, and Chungnam Asan as the next-generation semiconductor forward base.

At the Pyeongtaek Campus, about 10,000 Samsung Electronics employees and approximately 60,000 employees from partner companies and construction firms work together. Samsung Electronics contributes to creating quality jobs by establishing a win-win cooperation ecosystem with 83 local partner companies in Pyeongtaek and Anseong cities. From the site development in 2015 through 2030, the employment inducement effect is expected to exceed 1.3 million people. The production inducement effect amounts to 550 trillion KRW.

Samsung Electronics Pyeongtaek Campus Line 2 / Source=Samsung Electronics

Developing Pyeongtaek Campus into an Advanced Semiconductor Complex Production Site

Samsung Electronics announced that it will develop the Pyeongtaek Campus into an advanced semiconductor complex production site to maintain a super-gap in the semiconductor business. Amid recent unfavorable market outlooks centered on memory semiconductors and evaluations that the technological gap with competitors is narrowing, the company aims to find opportunities through steady R&D investment.

Samsung Electronics CEO Kyung Kye-hyun said to reporters on the day, "As the semiconductor cycle accelerates, investing less during downturns can lead to poor results during boom periods," adding, "Rather than relying on investment fluctuations, we believe steady investment is more appropriate, so we plan to invest consistently regardless of market conditions."

Increasing market share in the system semiconductor sector, including foundries, is also a challenge. Samsung Electronics focuses on expanding foundry capacity in this process. Since securing large-scale customers is important in the foundry business, the company intends to prepare to build the capacity scale desired by customers in advance.

CEO Kyung emphasized, "Like the hotel business, foundries also need to secure capacity first and then attract customers, but long-term strategic partnerships are important. We have been lacking in this area, and to secure large customers, we need to build large hotels," highlighting the importance of capacity and partnerships.

This content was produced with the assistance of AI translation services.