Samsung plans to start mass production at its first Yongin fab in October 2029, two years earlier than originally planned, as AI-driven chip shortages intensify pressure to add capacity.
Samsung Electronics plans to begin mass production at the first fab in its Yongin, South Korea semiconductor cluster in October 2029, accelerating the project from a previous 2031 target. The move comes as concerns about a chip-sector peak persist, but worsening global semiconductor supply shortages and intensifying AI competition increase pressure to expand manufacturing capacity. The project is backed by government support for land, power and water infrastructure, underscoring South Korea’s broader push to expand chipmaking capacity. SK Hynix is also reviewing a potential new production base in the United States as Korean chipmakers respond to AI-driven demand growth. The Yongin development remains part of South Korea’s wider semiconductor investment drive, including more than 800 trillion won, about $518 billion, in combined investments from Samsung and SK hynix for new fabrication sites across the country. Rising demand for high-bandwidth memory and advanced logic chips used in AI systems has increased the strategic importance of new fabs, particularly for companies such as Samsung that manufacture both memory and logic semiconductors at scale.