TLDR
- Samsung Electronics stock rose nearly 9% after reports it’s considering building an advanced chip packaging plant in Gwangju, South Korea.
- The investment plan could be announced at a June 29 meeting between South Korean President Lee Jae Myung and leaders of major conglomerates.
- The facility would support Samsung’s push into advanced chip packaging, a key part of the AI chip supply chain.
- Samsung competes with SK Hynix in the high-bandwidth memory (HBM) market, which supplies chips to Nvidia, AMD, and Google.
- In May, Samsung began shipping samples of its latest 12-layer HBM4E chip to customers.
Samsung Electronics (005930) stock jumped nearly 9% on Tuesday after the Korea Economic Daily reported the company is weighing plans to build an advanced semiconductor packaging facility in Gwangju, southwestern South Korea.
The report, citing unnamed industry sources, said Samsung could reveal the investment plan at a June 29 meeting at the presidential office between South Korean President Lee Jae Myung and the heads of the country’s biggest conglomerates.
Samsung Electronics Chairman Jay Y. Lee is expected to attend the meeting, along with SK Group Chairman Chey Tae-won. The gathering is themed around a “major shift in growth strategy.”
Samsung declined to comment on the report. The presidential office said corporate investment decisions are matters for companies to decide.
Why Advanced Packaging Matters
Advanced chip packaging has become a key battleground in the semiconductor industry. It allows chipmakers to stack and integrate multiple chips into a single package, improving performance without solely relying on shrinking transistor sizes.
Demand has been particularly strong for high-bandwidth memory chips. HBM stacks multiple DRAM chips vertically and is used alongside AI processors from companies like Nvidia. It’s a critical component in AI servers.
Samsung supplies chips to major AI players including Nvidia, AMD, and Google — all of which are driving demand for advanced memory used in AI data centers.
A new packaging facility in Gwangju would be seen as Samsung pushing to speed up investment ahead of an expected upswing in the chip sector fueled by AI demand.
Samsung vs. SK Hynix
Samsung has been working to close the gap with SK Hynix, the current market leader in HBM. SK Hynix stock was also up on Tuesday, rising over 15%.
In May, Samsung said it had started shipping samples of its latest HBM chip, the 12-layer HBM4E, to customers. That’s a step up from its previous generation and a signal the company is pushing hard to stay competitive.
The June 29 meeting between the president and conglomerate leaders could serve as the official stage for Samsung to lay out its plans.
Samsung has not confirmed the Gwangju facility, and the Korea Economic Daily report relies on unnamed industry sources.
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