Samsung to convert Giheung R&D site into new DRAM fab

Samsung Electronics is converting a site at its historic Giheung semiconductor campus from a planned research facility into a new DRAM production fab, as the South Korean chipmaker accelerates capacity expansion to meet surging demand for AI memory chips.

Giheung Campus Repurposed for Production

According to semiconductor analyst Jukan of Citrini Research, who first reported the plans on the X platform on July 14, Samsung has formed an internal team to advance construction of the new wafer fab at its Giheung campus in Yongin, Gyeonggi Province. The site was originally designated for an R&D center as part of Samsung's NRD-K complex, for which the company broke ground in 2022 with plans to invest approximately 20 trillion Korean won.semiconductor.samsung+3

The new DRAM fabrication facility is expected to have a monthly production capacity of roughly 100,000 wafers, with total investment projected to reach tens of trillions of Korean won. Initial construction could begin as early as the third quarter of this year.odaily

Broader Expansion Push

The Giheung decision is part of a wider capital expenditure ramp-up by Samsung. The company has begun major equipment orders for the first production line at its Pyeongtaek P5 fab, having earlier ordered more than 70 lithography machines for the facility's PH1 phase. Samsung accelerated cleanroom construction at P5 earlier this year, advancing the timeline by several months, with operations at P5 Fab 1 targeted for 2028.memorymarket+4

Separately, Reuters reported on July 13 that Samsung aims to bring forward operations at its chip fabrication site in Yongin to 2029, one to two years ahead of the original schedule.reuters

AI Demand Reshaping Memory Industry

The aggressive expansion reflects a memory market strained by AI infrastructure buildout. Reuters reported in early July that Samsung is expected to post an approximately 18-fold year-over-year jump in operating profit for the second quarter, driven by memory supply shortages as AI inference demand outpaces production growth. Analysts expect the memory market to remain undersupplied at least through next year.reuters

Samsung, SK Hynix, and Micron ↗ 4.23% together control roughly 90 to 95 percent of global DRAM production capacity, and all three are racing to expand output as high-bandwidth memory remains sold out through 2026.investing