Samsung Electronics Begins Building New Semiconductor Packaging Facility in Asan
Key Facts
The company is targeting a June 2028 start-up for the facility, according to details published about the project. The site will add a fifth production line and a large clean room, expanding the company’s capacity to carry out advanced packaging. The move comes as the memory industry seeks to meet the needs of AI applications and servers. The company’s London-listed shares closed at 4016 on November 11, according to EL7 data, with no currency specified for the price.
The project includes a fifth manufacturing line and a large clean room, while Samsung has set June 2028 as the target start-up date. The timeline gives the company time to complete construction and prepare the facility before production begins. These facilities serve the back-end processing stage of chips, part of the semiconductor production chain. Samsung is betting on having production capacity ready as customers continue to request additional shipments of memory products.
Samsung’s third-quarter results showed consolidated revenue of 195.3 trillion won, a quarterly record, and operating profit of 107.4 trillion won. The company said its memory business also posted record revenue and operating profit during the quarter, alongside production capacity constraints. The company attributed higher market prices across applications to strong server demand. Samsung’s capital expenditure in the third quarter was 29 trillion won, including 27.2 trillion won in the Device Solutions division. These figures place the Asan project within a period of investment expansion that coincided with strong memory division performance and pressure on available capacity.
Samsung said in its third-quarter results briefing that it had completed negotiations on HBM supply volumes for 2027, while customers continued to request additional shipments. This indicates that agreement on volumes has not ended customer demand for supplies, as the company prepares to add new packaging capacity in Asan. The company expects AI-driven demand growth to exceed industry supply in 2027 compared with 2026. It said it aims to build a more stable sales base through multi-year contracts and by preparing new products on time. In the fourth quarter of 2026, Samsung plans to increase sales of HBM, server DRAM and SSDs, while also boosting supplies of high-speed DDR5 for servers.
This economic indicator provides a domestic backdrop for the investment announcement, but does not change the facility’s target date or its announced spending level. The company’s next step remains carrying out construction toward the targeted June 2028 start-up. In the meantime, Samsung said customers continued to request additional HBM shipments after negotiations on 2027 volumes were completed. The company also expects AI-driven demand to exceed industry supply that year.