Business·Industry

"Packaging Is the Key to HBM Success"... Samsung to Grow the 'Heart of AI Chips' with 144 Trillion Won Investment (Comprehensive)

144 Trillion Won Investment in the Chungcheong Region, Covering Displays, Circuit Boards, and Batteries, Gets Underway in Earnest Transforming from a Simple Assembly and Inspection Facility into a Next-Generation HBM Production Hub Onyang Line 5 to Begin Operations a Year Ahead of Schedule… HBM4E Production Set for 2028

SOYEON KIM
2026-11-12 19:29:42
[Edaily Reporter SOYEON KIM ] SamsungElectronics has broken ground on a state-of-the-art next-generation High-Bandwidth Memory (HBM) packaging plant at its Onyang Campus in Asan, South Chungcheong Province, marking the start of full-scale efforts to establish a key production hub. As competition in the artificial intelligence (AI) semiconductor market expands beyond memory performance to include advanced packaging technology and production capacity, the company is accelerating efforts to strengthen its back-end process competitiveness through large-scale investment. President Lee Jae-myung and SamsungElectronics Chairman Jay Y. Lee personally attended the groundbreaking ceremony, emphasizing their commitment to investment aimed at securing leadership in the HBM market.

On the 12th, SamsungElectronics held a groundbreaking ceremony for “Onyang Line 5,” a state-of-the-art packaging plant, at its Onyang Campus in Asan, South Chungcheong Province, with President Lee and Chairman Lee in attendance. This marks the first step in transforming the Onyang Campus—which previously handled the assembly and testing of general-purpose memory—into a core production hub for AI semiconductors.

President Lee expressed his hope that “the first shovel we’ve broken ground with today will serve as a solid stepping stone not only for Chungcheong’s remarkable leap forward but also for building an ‘irreplaceable Republic of Korea’ that no one can rival,” and he thanked SamsungElectronics employees, investing companies, citizens of the Chungcheong region, and local governments. President Lee also praised South Chungcheong Province and Asan City for reducing the licensing and approval period to one-third of the usual time, calling it a “model case.”

Chairman Lee emphasized, “This site, which was once centered on simple assembly and inspection processes for general-purpose semiconductors, will be transformed into a cutting-edge HBM hub—the heart of AI semiconductors,” adding, “We will also actively pursue mega-projects in the Honam and Yeongnam regions.”

The core of this investment is the proactive expansion of HBM packaging production capacity. HBM is a high-performance memory that vertically stacks multiple DRAM chips and connects them through microscopic channels. Unlike conventional DRAM, the back-end processes—such as stacking, bonding, and testing—are technically challenging, and the manufacturing process is complex. Even if memory semiconductors are produced, it is difficult to sufficiently increase the final supply volume without the packaging capacity to complete them as HBM products.

President Lee Jae-myung performs a ceremonial groundbreaking alongside SamsungElectronics Chairman Jay Y. Lee and others at the groundbreaking ceremony for the Chungcheong Region Mega Project, held on the 12th at the SamsungElectronics Onyang Campus construction site in Asan, South Chungcheong Province. (From left) Park Soo-hyun, Governor of South Chungcheong Province; Kim Jung-kwan, Minister of Trade, Industry and Energy; President Lee Jae-myung; and Chairman Jay Y. Lee (Photo: Yonhap News)

Competition in the HBM market is also expanding beyond the performance of the semiconductors themselves to include the acquisition of advanced packaging technologies and production capacity. SamsungElectronics is seen as having made a strategic move to secure leadership in the HBM market by establishing a cutting-edge packaging hub in the Chungcheong region, thereby bolstering its future semiconductor production infrastructure. In particular, the importance of packaging technology grows as products evolve into next-generation versions such as HBM4 and HBM4E. Not only are the stacked structures becoming more complex, but data processing speed, power efficiency, and heat dissipation must all be managed simultaneously to meet the demands of high-performance AI accelerators.

SamsungElectronics’ decision to bring forward the operational schedule for its Onyang Line 5 by one year compared to the original plan is also a strategic move to respond to these market changes. SamsungElectronics plans to invest approximately 6 trillion won to construct a new factory featuring a three-story cleanroom spanning 9,400 pyeong, with operations set to begin in June 2028. Foundation work is currently underway, with construction progress at 4.9%. The new line is scheduled to begin full-scale production of next-generation HBM4E and other products.

In the medium to long term, the company plans to invest a total of 46 trillion won—including 6 trillion won for factory construction and 40 trillion won for advanced equipment—to establish five HBM production lines at the Onyang Campus. Including this project, SamsungElectronics plans to invest a total of 60 trillion won in semiconductor production facilities in the Chungcheong region, such as Cheonan and Onyang.

President Lee Jae-myung attended the groundbreaking ceremony for the Chungcheong Region Mega Project held on the 12th at the SamsungElectronics Onyang Campus construction site in Asan, South Chungcheong Province, where he watched a promotional video detailing the project’s progress alongside SamsungElectronics Chairman Jay Y. Lee. (Photo: Yonhap News)

SamsungElectronics is reorganizing its semiconductor back-end production system. The company plans to significantly expand the advanced HBM packaging capabilities at the Onyang Campus and, by linking them with the existing back-end capabilities in Cheonan, develop the entire Chungcheong region into a high-value-added semiconductor production hub.

It is also noteworthy that Chairman Lee is personally overseeing the advanced packaging sector. On the 1st, he inspected an advanced packaging research hub in Yokohama, Japan. While in Japan, he reviewed the development of next-generation packaging materials and process technologies, and back in Korea, he is moving to expand the mass production infrastructure to support these efforts. This is interpreted as a commitment to simultaneously pursue technological development and secure production capacity in the competition for next-generation HBM.

Samsung Group plans to concentrate investments from its major electronics affiliates—including not only semiconductors but also displays, semiconductor packaging substrates, and batteries—in the Chungcheong region. The total investment amounts to 144 trillion won. This strategy aims to enhance technological competitiveness and supply chain resilience by concentrating the production base for core components necessary for the growth of the AI industry in a single region. Samsung Display is investing a total of 67 trillion won in the Asan and Cheonan regions. It is investing 5.9 trillion won in the Asan A7 line, construction of which began last month, to build production facilities for organic light-emitting diode (OLED) displays for foldable smartphones, laptops, and tablets. Mass production is targeted for the second half of 2029.

SamsungElectroMechanics is also expanding its production facilities for high-performance package substrates for AI servers in Sejong. Construction of the new plant began last month, and the company plans to invest 4.3 trillion won to begin mass production in September 2028. SAMSUNG SDI CO.,LTD. is also investing a total of 9 trillion won in Cheonan to strengthen its next-generation battery production and development capabilities.

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