Samsung Electronics has announced plans to begin operations at its first Yongin semiconductor factory in 2029, advancing the original target by one to two years. The accelerated timeline reflects surging demand for memory chips used in artificial intelligence data centers and aligns with South Korea’s broader strategy to expand domestic chip production.
Samsung’s Revised Timeline for Yongin Fab
Previously, Samsung expected the first fabrication plant at the Yongin cluster to start operations in 2030 or 2031. A company spokesperson confirmed that the facility is now scheduled to open by 2029, placing the project on a tighter schedule. The Yongin site is part of a larger semiconductor cluster south of Seoul, where Samsung plans to build six chip factories. The first plant will serve as the foundation for subsequent construction phases.
To meet the revised date, Samsung must prepare the land and begin major construction work early. The company aims to add production capacity as technology companies increase spending on AI infrastructure and advanced memory products.
South Korea’s Push for Chip Production Expansion
South Korean authorities are supporting faster construction by shortening approval periods and providing earlier access to essential infrastructure like electricity and water. The national strategy targets doubling the country’s memory-chip production capacity within five years, including expedited 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 and 56 trillion won in high-bandwidth memory facilities in Cheonan and Onyang. Its domestic semiconductor program covers existing operations in Pyeongtaek and the new Yongin cluster.
SK Hynix is similarly 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 Shares Retreat After NASDAQ Debut
SK Hynix’s American depositary receipts (ADRs) debuted on NASDAQ on July 10, opening 14% above the $149 offering price at $170 and closing the session 12.8% higher. The company raised $26.5 billion from the US offering, with demand exceeding available shares by more than seven times. SK Hynix plans to use the funds for factories and equipment related to rising AI chip demand.
However, on Monday, SK Hynix shares dropped more than 15% in Seoul as investors took profits after the NASDAQ surge. The decline marked the stock’s largest single-day drop in nearly two decades and weighed on the broader Kospi index. CEO Kwak Noh-jung noted that memory demand could outpace production capacity beyond 2030 and warned that 2027 might become the industry’s worst year for memory supply as AI customers require more advanced chips.