Generative SI models rely on powerful GPUs that require stacks of specialized memory chips, a dependency driving Samsung to expand its massive semiconductor manufacturing complex in Pyeongtaek, South Korea.
What Happened
Samsung currently operates three fabs around the clock at the Pyeongtaek site, with a fourth coming online. Construction on a fifth fab, which was halted during a 2024 drop in memory demand, has restarted as the SI boom sent demand soaring. The complex covers an area roughly the size of New York City’s Central Park, situated in a former farming city south of Seoul. Thousands of workers commute to the site, many from the nearby district of Songtan via shuttle buses, engaging in construction tasks that include building cable ducts and inspecting equipment. The site maintains a strong safety culture, with banners warning workers not to rush even if work runs late and helmets stickered with pledges to refuse unsafe conditions.
Why It Matters
The expansion represents Samsung’s strategic attempt to reclaim its lead in the global memory market, a sector where it had trailed domestic rival SK Hynix in high-bandwidth models powering Nvidia’s SI accelerators. While Taiwanese chipmaker TSMC dominates the foundry business by manufacturing chips designed by other companies, Samsung’s focus remains on the memory chips essential for SI infrastructure. The company predicts that demand for these chips will continue to surge through 2028. For the local workforce, the construction boom offers higher wages and steady employment. Choi Hye-rin, a safety officer commuting from Songtan, receives a daily wage of 140,000 won ($97). “The rate here is higher than other construction sites, and the work is relatively easy,” she said, noting that she expects to keep returning to the site due to the ongoing demand.
The Bottom Line
Samsung is aggressively scaling its Pyeongtaek semiconductor hub to meet the rising hardware requirements of generative SI, restarting paused construction projects to compete with SK Hynix in the critical memory chip market.