Samsung is reportedly looking into potential sites to expand the footprint of its semiconductor manufacturing facilities.
The company is said to be looking at multiple sites in South Korea's Honam region. SK Hynix, its biggest local rival, is doing the same.
AI demand makes infrastructure expansion necessary
According to reports out of South Korea, this would be Samsung's first semiconductor back-end packaging plant in South Korea's Honam region. The company has multiple locations under consideration, including Gwangju and Saemangeum.
Gwangju is said to be the top candidate. It joins SK Hynix in looking at this region as a potential base for expansion. SK Hynix is also interested in setting up in either Gwangju or Muan. Neither company has previously built a semiconductor facility in this region.
The significant rise in AI infrastructure demand has made it necessary for Samsung to expand its manufacturing facilities. It currently operates semiconductor packaging facilities in Cheonan and Onyang in the country's South Chungcheong Province.
The Honam region is a suitable candidate for new facilities as it has significant available land, water, and power infrastructure. Gwangju remains a top contender as it already hosts many semiconductor assembly and test companies.
The report does mention that Samsung Electronics has said “nothing has been finalized” with regard to the location for the new semiconductor packaging plant. A city official from Gwangju quoted in the report has also said that “No discussions are currently underway.”
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