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Samsung Electronics plans to start operations at its first Yongin semiconductor factory in 2029, one to two years earlier than its previous target. The company is speeding up construction as demand rises for memory chips used in artificial intelligence data centers.
The decision forms part of South Korea’s plan to expand domestic chip production. Meanwhile, SK Hynix has attracted global investor attention after its American depositary receipts started trading on NASDAQ.
Samsung previously expected the first Yongin fabrication plant to begin operating in 2030 or 2031. A company spokesperson said Samsung ‘plans to begin operations at its first fabrication plant in Yongin by 2029,’ placing the project on a tighter schedule.
The site will form part of a wider semiconductor cluster south of Seoul. Samsung plans six chip factories in the area, with the first plant serving as the starting point for later construction phases.
The company must prepare the land and start major building work early enough to meet the revised date. Samsung wants to add production capacity as technology companies increase spending on AI infrastructure and advanced memory products.
South Korean authorities plan to support faster construction through shorter approval periods and earlier access to essential infrastructure. Semiconductor factories need large and stable supplies of electricity and water throughout production.
The national strategy aims to double South Korea’s memory-chip production capacity within five years. It includes faster development of Samsung and SK Hynix factories in Yongin and a new semiconductor cluster in Gwangju.
Samsung has also outlined plans to invest 400 trillion won in semiconductor factories in Gwangju. In addition, the company plans to spend 56 trillion won on high-bandwidth memory facilities in Cheonan and Onyang. Its wider domestic semiconductor program covers existing work in Pyeongtaek and the new Yongin cluster.
SK Hynix is also expanding its production network. The company plans to complete the fourth factory at its Yongin cluster by 2033, moving the target forward from 2045.
SK Hynix’s US-listed shares opened 14% above their $149 offering price during their NASDAQ debut on July 10. The American depositary receipts opened at $170 and closed the session 12.8% higher.
The company raised $26.5 billion from the US offering, while its main listing stayed in Seoul. Demand for the offering exceeded the available shares by more than seven times. SK Hynix plans to use the funds for factories and equipment linked to rising AI chip demand.
However, SK Hynix shares dropped more than 15% in Seoul on Monday as investors took profits after the NASDAQ debut. The fall marked the stock’s largest one-day decline in nearly two decades and weighed on the wider Kospi index.
SK Hynix Chief Executive Kwak Noh-jung expects memory demand to exceed the company’s production capacity beyond 2030. He also said 2027 could become the industry’s ‘worst year’ for memory supply as AI customers require more advanced chips.
Also Read: SK Hynix Shares Surge 13% After Raising $26.5 Billion in NASDAQ Debut
