[Chip Talk] On the Front Lines of the AI Chip War... Samsung P5, an "HBM Arsenal" Blurring the Line Between Memory and Foundry

Differentiation from Existing Plants with the Introduction of the "Triple Fab"
Complex Production Base for HBM4 and Advanced Foundry
Building a Global Supply Hub Linking Pyeongtaek, Yongin, and Taylor

Dozens of 100-meter-high cranes pierced the darkness and revealed their imposing presence. At 6:00 a.m. on the 4th, the construction site of Plant 5 (P5) at Samsung Electronics' Pyeongtaek Campus in Godeok-dong, Pyeongtaek-si, Gyeonggi-do, was filled with the heat of construction to secure next-generation semiconductor processes despite the early-morning cold. Although the sun had not yet risen, hundreds of searchlights illuminated the massive concrete frame, making it as bright as midday. Between them, rows of crawler cranes (track-type cranes) started operating all at once, sweeping between the huge steel structures.

The entrance to the site was crowded with workers who had gathered from early morning. Workers wearing thick winter gear and safety helmets kept streaming into the site. The estimated daily workforce alone is about 15,000 to 20,000 people. It is as if the entire population of a small city converges here every morning to build the physical foundation of the semiconductor super-gap. From afar, the sound of machinery running and whistles exchanging work instructions continued. The site was imbued with Samsung Electronics' sense of urgency about its "super-gap" strategy: a speed race to widen the semiconductor technology gap, and the awareness that its competitiveness could be shaken the moment it allows followers to catch up.

When completed in 2028, the resident workforce at the Pyeongtaek Campus is expected to exceed 100,000 people. This is interpreted not merely as a simple plant expansion, but as a large-scale expansion of the production ecosystem that will transform the entire industrial structure of the Pyeongtaek area. Until just a few months ago, this site had been overshadowed by rumors of construction suspension and controversy over design changes, highlighting uncertainty. However, P5 is now rapidly establishing itself as a key foothold in the next-generation semiconductor race, as large-scale equipment installation and process build-out move into full swing.

The industry estimates that more than 60 trillion won will be invested in the construction of P5. This is the largest scale ever for a single line. Behind this record-breaking mega-project is the "triple fab" that P5 is introducing for the first time. Existing Plants P1 to P4 operate in a "double fab" configuration, with cleanrooms for wafer processing located on the first and second floors. P5 goes a step further. By stacking cleanrooms vertically on three levels, it maximizes production efficiency per unit area. By independently allocating different processes such as high-bandwidth memory (HBM), DRAM, and foundry (contract semiconductor manufacturing) on each floor, the company aims to build a complex production base that can respond flexibly to market conditions.

As its room for maneuver widens, the triple fab requires a completely different level of technology than simply building taller structures. In particular, semiconductors can suffer defects even from minute vibrations, so the key is to perfectly control the vibrations of the thousands of pieces of equipment that will be installed on the three floors. The logistics routes of the overhead hoist transport (OHT) robots, which will move wafers vertically and horizontally from the first to the third floor, must also be optimized. Samsung C&T, which is in charge of construction, has adopted a modular construction method in which utility modules such as gas piping and electrical lines, which are essential for semiconductor production, are manufactured separately. The strategy is to reduce the proportion of on-site work to minimize welding and assembly errors, and to dramatically shorten the construction period.

Once completed as envisioned, P5 will have two cleanrooms on each floor, for a total of six cleanrooms. This means its production capacity will be 50% higher than that of P4, which has four cleanrooms. Although P5's product mix has not yet been finalized, it is highly likely to operate as a "hybrid fab" where next-generation memory such as HBM4 (6th generation) and ultra-fine foundry lines at 2 nm (1 nm = one-billionth of a meter) or below coexist.

What set P5's idle tower cranes back in motion in November last year was the arrival of the semiconductor super-cycle. With the spread of AI data centers sending memory prices soaring, the moment has come to row while the tide is high. The fact that commodity DRAM, whose price has more than doubled year-on-year, is giving participating companies in what is expected to be this year's fiercest battleground, the HBM4 market, greater bargaining power in price negotiations is also a positive factor. For Samsung Electronics, which tasted defeat in the HBM3E (5th generation) competition against SK Hynix, HBM4 is a golden opportunity to turn the tables.

Ryu Hyunggeun, a researcher at Daishin Securities, said, "Considering that Samsung Electronics is receiving favorable reviews from customers for HBM4 operating speeds, the company is likely to overcome its past sluggishness and stage a comeback," and estimated this year's HBM sales at 23.7 trillion won, up 183% from the previous year. At its 2025 fourth-quarter earnings conference call held at the end of last month, Samsung Electronics said, "At the request of major customers, mass-production shipments of HBM4 volumes, including the top-tier 11.7 Gbps product, are scheduled to begin in February," adding, "For HBM4E (7th generation), standard products will first be sampled to customers around the middle of this year."

In the fourth quarter of last year, Samsung Electronics became the first Korean company to open the era of 20 trillion won in quarterly operating profit. Its quarterly sales also reached 93.8374 trillion won, setting an all-time high. Annual sales also hit a record 333.6059 trillion won. On the previous day, its share price broke through 169,000 won during intraday trading, planting its flag on the 1,000 trillion won market capitalization peak that no other domestic company has ever reached.

The massive funds and cash generation secured through this are the foundation for building Samsung's "semiconductor empire." Samsung Electronics has already declared that it will invest a total of 450 trillion won in Korea over the next five years, including research and development (R&D). Led by the Pyeongtaek Campus, which is being transformed into an "HBM4 forward base," the Taylor plant in Texas, United States, which will handle 2 nm and 3 nm-based AI and high-performance computing (HPC) chips, is finishing preparations for launch. It is the front line of order-taking efforts to win over major U.S.-based customers such as Tesla and Nvidia.

The company is also moving to expand its territory in the system semiconductor market dominated by TSMC. The Yongin Semiconductor National Industrial Complex, where Samsung Electronics plans to pour in about 360 trillion won over the next 20 years, is expected to host six advanced system semiconductor fabs, as well as more than 150 materials, parts, and equipment companies, fabless design firms, and research institutes. Some in the industry even analyze that the final investment cost could approach about 400 trillion won due to inflation and the introduction of cutting-edge equipment.

An industry official said, "Samsung Electronics, which had not made much use of bank financing in the past, is now becoming more flexible in how it secures investment resources, as seen in its outstanding loan balance of around 3.6 trillion won," adding, "This shows its determination not to lose its leading position in the semiconductor super-cycle through all-out facility investment." Kim Dongwon, head of research at KB Securities, estimated Samsung Electronics' operating profit for this year at 170 trillion won and predicted that it would overtake TSMC (estimated at 124 trillion won) to enter the global top 10 in operating profit.