Samsung Commits $310 Billion to AI Infrastructure with New Pyeongtaek Chip Facility

Samsung Accelerates AI Investment with Massive Infrastructure Expansion

Samsung Electronics has unveiled an ambitious $310 billion five-year investment strategy centered on artificial intelligence infrastructure, marking one of the largest corporate commitments to the AI revolution. The South Korean technology giant announced plans to construct a new chip production line at its Pyeongtaek plant, with mass production scheduled to begin in 2028 1

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Strategic Pivot from Consumer to AI Markets

The new P5 facility represents a significant strategic shift for Samsung, which had previously delayed construction since late 2023 due to weakened demand for smartphone and personal computer chips. The company is now fast-tracking the expansion to capitalize on the surging demand for AI memory semiconductors 1

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This memory chip factory will serve dual purposes, producing components for both conventional applications and AI servers, according to company representatives. The facility forms part of what Samsung describes as the world's largest semiconductor production complex, positioning the company to meet anticipated sustained growth in the AI sector 1

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Record Performance Drives Confidence

Samsung's aggressive investment strategy comes on the heels of exceptional financial performance in its semiconductor division. The company achieved record quarterly revenue in the third quarter of 2025, driven primarily by robust sales of HBM3E memory chips and server solid-state drives. Operating profit for the July-September period surged 32.5 percent year-on-year to 12.16 trillion won ($8.5 billion), exceeding market forecasts 1

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Comprehensive AI Infrastructure Development

The $310 billion investment extends beyond chip manufacturing to encompass a broad AI ecosystem. Samsung SDS, the company's IT services division, plans to construct two AI-focused data centers in South Korea to enhance infrastructure for AI computing applications 2

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Additionally, Samsung SDI will receive funding allocation for next-generation electric vehicle battery technologies, including development of all-solid-state batteries, demonstrating the company's integrated approach to emerging technologies 2

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Leadership Vision and Economic Impact

Samsung Chairman Jay Y. Lee emphasized the broader economic implications of the investment, stating the company will increase domestic investment and create quality employment opportunities for young professionals. The chairman also highlighted Samsung's commitment to fostering win-win relationships with small and medium-sized enterprises and venture companies 1

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Samsung anticipates sustained mid- to long-term expansion in memory semiconductor demand as artificial intelligence adoption accelerates globally. The Pyeongtaek expansion represents a cornerstone of this comprehensive strategy to position Samsung as a dominant force in the AI infrastructure market 1

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