Samsung is scaling up its semiconductor manufacturing in Pyeongtaek, South Korea, to meet the rising demand for AI-related memory chips. The company currently operates three fabs at the site, with a fourth facility preparing to come online and construction of a fifth fab resuming after a pause in 2024.
At the P4 facility, Samsung is converting a production line from NAND to a dedicated DRAM line using its 1c process technology. The company aims for a production capacity of 100,000 to 120,000 wafers per month at this line by Q1 2027. Meanwhile, construction on the P5 complex has accelerated, with each fab requiring an investment exceeding ₩60 trillion.
To address the supply shortage in server DRAM, particularly DDR5, Samsung is reallocating existing NAND capacity to DRAM at its Pyeongtaek and Hwaseong facilities. Server DDR5 prices currently carry a 70% premium. These strategic shifts contributed to a record operating profit of over ₩100 trillion in Q3 2026.
Looking ahead, Samsung is committed to a ₩360 trillion investment plan for a new semiconductor cluster in Yongin. This project will include six new fabs, with the first facility expected to launch in 2029. Investors are monitoring these milestones, including the P4 capacity targets and the long-term price stability of server DDR5.
