Samsung plans to expand advanced packaging: factory construction in Gwangju may be announced as early as the end of this month, marking the first new packaging facility built in 35 years.
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Samsung Electronics is accelerating the deployment of advanced packaging capacity, planning to build a new packaging plant in Gwangju, South Korea. This will be the first time in 35 years that the company has constructed a new packaging base, and the first major new semiconductor production facility in 11 years since the launch of the Pyeongtaek campus.
According to Korean media reports, Samsung is expected to officially announce the investment plan as early as the end of this month at a meeting of large corporate group leaders presided over by President Lee Jae-myung. SK Group Chairman Chey Tae-won and other business leaders are expected to attend the meeting.
The new Gwangju plant will extend the geographical reach of Samsung’s packaging business from its traditional strongholds in Chungcheong Province—Asan Onyang and Cheonan—southward to Korea’s Honam region, marking an important expansion node in its semiconductor manufacturing map.
Meanwhile, Samsung is significantly boosting its HBM back-end processing capacity and accelerating the construction of a semiconductor testing base in Vietnam. Its multi-pronged efforts in advanced packaging reflect the rapidly evolving competitive landscape of the industry.
HBM Capacity Expansion Accelerates: Cheonan Site Upgrade, HCB Technology Transition by 2029
According to reports, Samsung selected Gwangju as the location for the new packaging base partly due to concerns over power and water resources nearing their limits in the capital region, with Gwangju standing out owing to infrastructure capacity advantages.
The construction of the new plant will provide a new capacity support point in the Honam region outside the existing Chungcheong packaging system, further diversifying the geographical layout of Samsung’s packaging network to address the increasing demand for advanced packaging.
On the technology investment front, Samsung is expanding the HBM back-end processing capacity at its Cheonan facility, aiming to increase the monthly thermal compression bonding (TCB) capacity to 231,000 units and hybrid copper bonding (HCB) capacity to 19,500 units by the end of 2026.
The report further noted that Samsung plans to fully switch its HBM stacking process from TCB to HCB by 2029, highlighting its continued commitment to next-generation advanced packaging technologies.
For overseas deployment, a proposal document shows that Samsung Electronics plans to invest 39 trillion Vietnamese dong (about $1.5 billion) in an industrial park about 60 kilometers north of Hanoi to build a semiconductor testing facility. The project has already begun construction and is expected to officially start operations in November 2027.
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