Samsung to Add New Pyeongtaek Chip Line as Demand Strengthens

Samsung Electronics said it will add a new semiconductor production line at its Pyeongtaek complex in South Korea, expanding its manufacturing capacity as global chip demand shows steady improvement. 

The new line, known as the P5 plant, will support mass production from 2028 and forms part of Samsung’s previously announced investment plan of 450 trillion won (US $311 billion) for domestic operations over the next five years.

The announcement was made alongside investment commitments from other major South Korean firms, including Hyundai Motor Group. It follows a recent U.S.–South Korea trade agreement under which Korean companies pledged around US $350 billion for strategic sectors in the United States, raising public concern that domestic investment could be overshadowed.

• Samsung revives its P5 plant plan as global chip demand strengthens
• New Pyeongtaek semiconductor line to boost memory chip production from 2028
• Expansion reinforces Samsung’s position as global memory chip market leader

South Korean President Lee Jae Myung, meeting with industry leaders, encouraged major corporations to maintain strong investment levels at home while making use of government programmes designed to support overseas expansion.

Samsung said the new Pyeongtaek line will focus on memory semiconductors used in smartphones, computers and servers. The company noted that chip prices have been rising in recent months, with supply tightening across several product categories. By adding capacity, Samsung aims to ensure it can respond quickly to future shifts in global demand.

The P5 facility was originally planned for late 2023 but was delayed due to weaker demand in smartphones and personal computers earlier in the decade. The company’s decision to restart the project indicates confidence that the chip market is gradually recovering and that long-term demand will remain solid.

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Samsung, the world’s largest memory chip maker, already operates multiple fabrication lines in the Pyeongtaek industrial zone, one of the world’s largest semiconductor complexes. The expansion is expected to strengthen its position in a market where stable supply, cost efficiency and rapid scaling have become increasingly important for manufacturers worldwide.