[News] Samsung Semiconductor Halts Construction of Pyeongtaek Plant 5, Focuses on Expanding Plant 4 Line to Attract Customers

2024-02-21 Semiconductors editor

Despite challenges, Samsung Semiconductor remains optimistic about the market outlook for the second half of the year. According to a report from TechNews citing sources , to compete with TSMC and enhance efficiency to meet market demands, Samsung is reportedly adjusting the expansion schedule of its fabs.

As per a report from global media outlet SamMobile, Samsung Semiconductor is adjusting the construction schedule of its Pyeongtaek Plant 4 (P4) in South Korea to prioritize the construction of the PH2 production line, temporarily halting the construction of the new production line at the semiconductor plant 5 (P5).

In addition, Samsung is said to be reallocating resources to invest in the PH2 production line at the P4 plant. Once the cleanroom is completed, it will be dedicated to contract chip manufacturing.

Pyeongtaek is a major semiconductor manufacturing center for Samsung, serving as a significant hub for its foundry business and a crucial memory plant. South Korea’s Pyeongtaek currently has the operational P1, P2, and P3 plants, with the construction of the P4 and P5 underway.

Reportedly, Samsung is expected to expand its contract manufacturing capacity to secure more clients from its competitor, TSMC. Additionally, the P4 plant will also establish the PH3 production line to produce DRAM and other components. Samsung’s adjustment in plans reflects its anticipation of rising market demand and its efforts to prepare to meet those demands.

While Samsung stated that the suspension of the P5 plant was for inspection purposes, sources cited in the SamMobile report believe that Samsung likely slowed down the progress of the P5 plant due to the previous downturn in the semiconductor market.

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(Photo credit: Samsung)

Please note that this article cites information from SamMobile and TechNews.