Samsung Electronics is pursuing a plan to raise the height of its next-generation semiconductor fabs under construction at its Pyeongtaek Campus from two stories to three. Administrative procedures to significantly increase the floor area ratio for industrial land are underway, and if approved, production capacity on the same site could expand by approximately 1.5 times.
According to industry sources on the 19th, Gyeonggi Province is currently reviewing an industrial complex plan amendment for Samsung Electronics’ Pyeongtaek Campus submitted by Pyeongtaek City. The amendment includes raising the floor area ratio for industrial lot A1-1 within the Pyeongtaek Campus from the current 350% to 490%.
The industrial complex plan amendment must pass Gyeonggi Province review and then clear the Ministry of Land, Infrastructure and Transport’s industrial location policy deliberation for final approval. Barring any unforeseen variables, Pyeongtaek City expects the process to conclude around November following ministry review in October.
This floor area ratio increase is a follow-up measure stemming from the designation of Samsung Electronics’ Pyeongtaek Campus as a National Advanced Strategic Industry Specialized Complex. When the South Korean government designated the Pyeongtaek semiconductor site as a specialized complex in July 2023, it allowed companies within such complexes to increase their floor area ratio by up to 1.4 times.
Once the floor area ratio is raised, Samsung Electronics can proceed with plans to increase the building scale of the P5-1 and P5-2 fabs, currently under construction with a target completion date of 2030, from two stories to three. This is expected to be the first case leveraging the floor area ratio exemption granted at the time of the specialized complex designation.
The production space expansion effect is also expected to be substantial. A two-story fab can accommodate four cleanrooms for semiconductor production, but a three-story expansion would allow up to six. By simple calculation, a single fab’s production capacity could increase by approximately 1.5 times.
A Pyeongtaek City official said, “The floor area ratio increase is an exemption the government grants to companies possessing nationally advanced strategic technologies to enhance their competitiveness,” adding, “Barring any surprises, this industrial complex plan amendment will pass ministry review in October and be finalized by November.”
Samsung Electronics has been expanding its semiconductor production base centered on the Pyeongtaek Campus. The Pyeongtaek Campus, built in the Godeok-dong area of Pyeongtaek City, is a Samsung Electronics single industrial complex spanning approximately 3.9 million square meters, with three fabs currently in operation.
Once this floor area ratio increase is finalized, Samsung Electronics will be able to secure additional production space on the same site without acquiring new land. The move is expected to impact the Pyeongtaek Campus’s production competitiveness by establishing a foundation for flexibly expanding production capacity in response to changes in semiconductor demand.