Samsung to Invest 46 Trillion KRW in New South Korean HBM Facility
Samsung Electronics has signed a memorandum of understanding with Asan City, South Korea, to invest 46 trillion KRW in expanding its Onyang semiconductor cluster. This investment will fund the construction of a massive, modern High Bandwidth Memory (HBM) production facility scheduled for completion in May 2029. As AI hardware demand surges, expanding HBM production capacity is critical to securing a stable supply chain for high-performance computing. This long-term infrastructure project positions Samsung to better compete with rivals like SK Hynix and Micron in the lucrative AI memory market. The new facility will feature a cleanroom equivalent to the size of four football fields, expanding the Onyang cluster's total area from 270,000 to 420,000 square meters. Construction is set to begin in the second half of 2026 and is expected to create around 700 direct jobs upon completion.
## BACKGROUND
High Bandwidth Memory (HBM) is a high-performance 3D-stacked DRAM technology designed to deliver significantly higher bandwidth than traditional memory. It is essential for training and running large AI models, leading to an unprecedented demand surge that has constrained the global supply of general-purpose memory.