Samsung Electronics will add a chip production line at its plant in the South Korean city of Pyeongtaek to meet rising demand from the global boom in artificial intelligence, the company said on Sunday.
Mass production will begin in 2028, the South Korean chipmaker said.
"Samsung will raise domestic investment, create quality jobs for young people and make even more efforts for a win-win with small and medium-sized, as well as venture companies," Samsung Electronics Chairman Jay Y. Lee said.
The new Samsung factory, which will make memory chips, will cater to demand for traditional and AI servers, a spokesperson said. Semiconductor prices are surging, as the global rush by chipmakers to produce AI chips tightens supply of those needed for smartphones, computers and servers.
Samsung Electronics this month raised prices of certain memory chips by as much as 60% compared to September, two people with knowledge of the hikes have told Reuters.
The new production line, or the P5 plant, part of the world's biggest chip complex, had been delayed since late 2023, as demand slowed for chips for smartphones and PCs, and oversupply, according to public filings of its builder, Samsung C&T.
The South Korean chipmaker said that it also plans additional infrastructure investments to support expanded operations.
"With the global AI era entering full scale, Samsung Electronics anticipates a mid- to long-term expansion in demand for memory semiconductors. In order to respond promptly to market changes, the company intends to secure production lines in advance," Samsung Electronics said in a statement.
