Samsung Electronics is considering plans to build a state-of-the-art semiconductor packaging facility in Gwangju, a city in southwestern South Korea, the Korea Economic Daily reported on Tuesday.
The newspaper, citing unnamed industry sources, indicated that the company may announce the investment plan during a meeting scheduled for June 29, 2025, between South Korean President Lee Jae-myung and the leaders of the country's largest industrial conglomerates. The meeting, to be held at the presidential residence, will focus on a fundamental shift in growth strategy.
Samsung Electronics Chairman Jay Y. Lee and SK Group Chairman Choi Tae-won are both expected to attend the meeting.
According to reports, the potential facility would support Samsung's efforts to expand its advanced chip packaging operations, which have become a crucial element in the AI chip supply chain. Demand for high-bandwidth memory chips used in AI servers has surged.
Advanced packaging allows chip manufacturers to integrate multiple chips into a single package to improve performance. HBM technology, which involves stacking multiple DRAM chips vertically, is used in AI processors from companies including Nvidia.
Samsung supplies major AI companies such as Nvidia, Advanced Micro Devices and Google with chips, which use advanced memory chips in AI servers and processors.
The company is seeking to strengthen its position in the HBM market, where it competes with the leading company SK Hynix. Last May, Samsung announced that it had begun shipping samples of its 12-layer HBM4E chip to customers.
