AI demand is driving South Korea’s chip giant to accelerate capacity expansion. Samsung’s Longren wafer fab plans to start mass production 2 years ahead of schedule.

BlockBeats news, July 12: Samsung Electronics plans to advance the mass-production timeline of the first wafer fab at its Giheung, South Korea semiconductor cluster by 2 years, targeting operations to begin in October 2029. Meanwhile, SK hynix is considering building new production facilities in the United States, as AI demand is pushing South Korean semiconductor companies to accelerate their capacity expansion plans.

Samsung Electronics plans to build a total of 6 wafer fabs in the Renai National Industrial Park. The first fab was originally scheduled to start operations in 2031. However, the government and Samsung have reached a consensus to move it up to October 2029. The South Korean government will accelerate key infrastructure development such as land construction, power, and water supply to support the project’s earlier execution.

For SK hynix, after successfully listing on Nasdaq on July 10, the company is now considering building a new production base in the United States. Reports say SK hynix has been studying options since the beginning of this year for establishing a semiconductor production hub in the U.S., where AI industries are concentrated.

Global memory chip leaders such as Samsung Electronics and SK hynix are expanding production capacity to address chip supply tightness driven by the AI industry. The South Korean government is also pushing for the construction of new semiconductor industrial parks, and plans to speed up project implementation by simplifying environmental assessments and optimizing approval processes.

Industry insiders say that although there are concerns in the market about the semiconductor cycle’s peak, current demand for chip production capacity remains strong. To secure industrial leadership in the AI era, expanding semiconductor manufacturing capacity has become the current focus.