Samsung expands DRAM production to keep Apple from turning to Chinese suppliers

Samsung Electronics is building a new end-fab facility at its Hwaseong campus in South Korea and consolidating scattered operations to raise commodity DRAM production capacity by roughly 15% before the end of 2026, a move driven largely by surging demand from Apple ↗ 0.39% and other major clients.

Consolidation at Hwaseong

According to a report from South Korean outlet SE Daily, Samsung's Memory Manufacturing Technology Center formed a task force this month and began constructing the commodity DRAM end-fab at Complex 1 of its Hwaseong campus. The end-fab handles the final stage of wafer manufacturing, a process Samsung currently splits between Hwaseong Complex 2 and its Cheonan campus.androidheadlines+1

By relocating those operations into Complex 1 — where clean rooms stand ready after Samsung demolished older memory production lines — the company expects to cut transit time between facilities and improve throughput. The freed-up space at Hwaseong Complex 2 and Cheonan will then accommodate additional production lines.sedaily+1

"By around year-end, Samsung Electronics' commodity DRAM production capacity is expected to increase by about 15% from the start of the year," an industry official told SE Daily.sedaily

Apple and the Memory Crisis

The expansion comes amid a broader DRAM shortage that has driven contract prices sharply higher. Standard DRAM prices roughly doubled between late 2025 and early 2026, according to industry analyses, with 12GB LPDDR5X modules climbing from roughly $25–$29 to around $70. Apple has reportedly lobbied Washington to ease restrictions on Chinese DRAM imports as a way to offset tight supply. Samsung's capacity push appears aimed in part at keeping Apple from diversifying toward Chinese memory suppliers.sammobile+2

Broader Capacity Picture

The Hwaseong end-fab project adds to Samsung's wider semiconductor buildout. The company broke ground on its Pyeongtaek P5 line earlier this year and is ramping its Taylor, Texas, foundry facility. Industry analysts expect the memory supply crunch to persist well into 2027, lending urgency to Samsung's timeline for bringing the new capacity online by December.buysellram+3