Rendering of the Yongin Advanced System Semiconductor National Industrial Complex in Idong-eup and Namsa-eup, Yongin, where Samsung Electronics is building a fab. Yongin City
Samsung Electronics is building a fab at the Yongin Advanced System Semiconductor National Industrial Complex in Idong-eup, Yongin. Yonhap News
Samsung Electronics (005930.KS) is pushing to move up the operation date of its first semiconductor fab at the Yongin semiconductor national industrial complex to 2029. That timeline is one to two years faster than the originally expected 2030-2031, part of a plan to secure next-generation artificial intelligence (AI) chip production capacity early.
According to the industry on the 12th, Samsung Electronics has set a 2029 operation target for the first of a total of six fabs (Y1) to be built at the Yongin national industrial complex and is pursuing related projects. This timeline was also discussed at the “Mega Project Public-Private Joint Review Meeting” held on the 6th under the president’s chairmanship, sources said.
To operate Y1 in 2029, site preparation work is expected to begin in the second half of this year at the latest, with fab construction starting in 2027. Considering that building a cutting-edge chip plant typically takes about two years, follow-up procedures such as compensation for land and structures, expropriation rulings, and contractor selection must also proceed in line with the schedule.
Building core infrastructure such as power and water will also be a key variable determining the 2029 launch. The government plans to move up the groundbreaking of a 3GW (gigawatt) liquefied natural gas (LNG) power plant being pursued near the Yongin national industrial complex, in line with Samsung Electronics’ early operation schedule. If the second- and third-phase power supply and phased water supply schedules are also shortened, the plan to operate the Yongin first fab in 2029 is expected to gain further momentum.
If the first fab’s operation is moved up, Samsung Electronics’ expansion of advanced chip production capacity is also expected to accelerate. Samsung Electronics’ current production capacity reaches 650,000 wafers per month, and it is projected to reach 720,000 per month next year, 770,000 per month the following year, and 770,000 per month in 2028. On top of this, some project that total production capacity could reach 1 million wafers per month once the Yongin first fab begins operating.
“If the fab’s operation date is moved up, we can respond more quickly to surging AI chip demand,” an industry official said. “The effect of building up the domestic semiconductor ecosystem will also appear faster than expected.”
Meanwhile, Samsung Electronics said through its mega project investment plan announced late last month that it would invest 2,030 trillion won in the Pyeongtaek and Yongin semiconductor clusters and 400 trillion won in the Honam region. The industry projects that Samsung Electronics’ capital expenditure (CAPEX) will increase by 30-40 percent annually over the next three years.