Samsung Electronics, Semiconductor Super-Gap... Full-Scale Construction of Pyeongtaek Plant Begins

Final Building Permit Area 700,000㎡
Yangsang Outlook for the Second Half of 2023

Samsung Electronics Pyeongtaek Campus

[Asia Economy Reporter Dongwoo Lee] Samsung Electronics is set to begin construction as early as next month on the third semiconductor production line, the 'P3' factory, at its Pyeongtaek Campus in Gyeonggi Province. With a total investment exceeding 30 trillion won, this project is interpreted as a commitment to maintaining its 'super-gap' as the global number one memory semiconductor company.

According to Gyeonggi Province's Pyeongtaek City and Samsung Electronics on the 10th, construction of the semiconductor third production line (P3) building at the Pyeongtaek Campus will start as early as September.

The final approved building area is known to be approximately 700,000 square meters. This includes the semiconductor production line, typically built with two floors, and auxiliary buildings such as offices with five or more floors.

The P3 line is the largest among the six lines Samsung Electronics plans to build at the Pyeongtaek Campus. Considering that semiconductor factory construction, equipment installation, and production usually take about 3 to 4 years, mass production at the P3 line is expected to begin in the second half of 2023.

Previously, the P1 line started operation in the second half of 2017, and the P2 line, currently in the final stages of construction, is expected to be operational within this year. Given this 'three-year cycle' for new production lines to begin mass production, it is anticipated that the P3 line's first production will occur in the second half of 2023.

The investment amount for the P3 line is expected to be the largest among single lines at the Pyeongtaek Campus. Considering that the smaller P2 line's investment reached 30 trillion won, the P3 line's investment is expected to far exceed 30 trillion won.

Samsung Electronics is accelerating the expansion of its semiconductor lines as part of bold preemptive investments to maintain a super-gap over competitors, reflecting the management philosophy of Samsung and Vice Chairman Lee Jae-yong.

Samsung anticipates continuous growth in semiconductor demand due to the spread of the 'untact' (non-face-to-face) lifestyle caused by the COVID-19 pandemic. Samsung has set a goal to become the world’s number one in the non-memory semiconductor sector by 2030 and is also expanding investments in the foundry sector.

Samsung Electronics is also hastening the construction of the remaining lines at the Pyeongtaek Campus. According to Pyeongtaek City, Samsung has requested additional industrial water supply from the city in preparation for the construction of the P4 to P6 lines.