Is AI the current big thing, or is it currently a bubble? That depends on who you ask. However, it is undeniable that companies are basically throwing money at it. Many top tech companies have invested billions of dollars in the technology, building data centers, advancing semiconductor tech, and more, all in the name of AI. So, it doesn’t really come as a surprise that Samsung is just as willing to spend more money to speed up its chip production to keep up with demand.
Samsung is spending money to ramp up chip production
Samsung is going all in on its Pyeongtaek facility in South Korea, pumping $3 billion into Phase 4 of the P4 site. That’s a 50% increase from the original budget. The company paused construction in 2022 when the semiconductor market tanked, but the AI boom reignited those plans again.
Phase 4 focuses on sixth-generation high-bandwidth memory (HBM4) and 1c DRAM using 10-nanometer process tech. Once complete in April 2027, it’ll churn out 80,000 12-inch wafers monthly, contributing to P4’s total capacity of 200,000 wafers. Samsung is also planning a P5 facility to expand even further.
The investment addresses surging demand from Nvidia, AMD, Broadcom, and OpenAI. OpenAI alone needs around 900,000 high-performance DRAM wafers monthly for its AI data centers. Samsung’s betting big that AI demand isn’t slowing down anytime soon.
Beating TSMC to the punch
The South Korean tech giant has fallen behind TSMC in mobile chipsets. Samsung just recently spent a lot of money on 2nm chip production. However, AI chips offer Samsung a chance to reclaim market share. By focusing on AI-related memory chips like HBM4 and advanced DRAM, Samsung is positioning itself as the TSMC for AI infrastructure.
Now, when it comes to semiconductor tech, TSMC leads in logic chips, but Samsung’s strength is memory. This helps power AI accelerators and data centers. The AI surge has created supply shortages and price hikes, which ultimately benefit Samsung.
Major clients like Tesla and OpenAI already rely on Samsung for AI chips. By accelerating chip production with billions in investment, Samsung is setting itself up to outpace rivals like SK Hynix and TSMC in the semiconductor race.
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