Samsung Electronics has made headlines with its latest decision to construct a new DRAM factory at the Giheung campus in South Korea. This move marks a significant investment in the same location where Samsung originally built its reputation in the memory chip sector over forty years ago.
The Giheung campus, operational since 1983, is a cornerstone of Samsung’s semiconductor operations. Notably, it was here that the company produced the world's first 64Mb DRAM chip in 1992, a breakthrough that propelled its leadership in the memory market. Today, the facility focuses largely on producing advanced chips, including those with process nodes reaching down to 8nm.
In addition to the new factory, Samsung has been working on a substantial R&D complex known as NRD-K, which spans approximately 109,000 square meters and carries a hefty investment of around KRW 20 trillion (approximately $15 billion). The construction of this facility kicked off in 2022, and it’s expected to be fully operational by 2030. A tool-in ceremony for NRD-K occurred on November 18, 2024, aiming for its R&D production line to be active by mid-2025. This facility will focus on cutting-edge memory and system semiconductors.
Expansion Strategy in the Semiconductor Sector
To maintain its competitive edge, Samsung is also expanding its mega-campus in Pyeongtaek, which plays a crucial role in High Bandwidth Memory (HBM) production. The company is not just resting on its laurels; it is also developing a new facility in southwestern South Korea. This expansion comes as it faces stiff competition from SK Hynix, which has secured early supply deals with Nvidia, giving it a strong position in the market. Samsung's efforts in the HBM segment have encountered challenges, particularly with the qualification of its HBM3E chips.
Furthermore, the existing S7 fabrication facility at Giheung is scheduled for adjustments in the latter half of 2026, aiming to enhance its output capabilities. Currently, Samsung, along with SK Hynix and Micron, controls a significant portion of the global DRAM supply, making these developments crucial for investors and industry watchers alike.
This material is informational and not financial advice.
