Phase 1 selection in final stages
Introduction of second line simultaneously pursued
Operation timeline accelerated to counter AI demand
Semiconductor equipment industry expects massive benefits
Samsung Electronics is entering a semiconductor equipment investment phase to be brought into the Pyeongtaek 5 Fab (P5). It is understood that the company will shortly finalize the selection of semiconductor equipment companies to be placed in the first manufacturing line, and is currently concurrently promoting the introduction of facilities for the second line. As orders for semiconductor equipment on the scale of tens of trillion won are imminent, expectations within the industry are rising.
According to the industry on the 15th, the Samsung Electronics Device Solutions (DS) Division has entered the final stage of selecting semiconductor manufacturing equipment for establishing Phase 1, the first manufacturing line of P5. At P5, the fab framework is currently going up, and supply facilities for special gases and chemicals for semiconductor manufacturing are being built. It is observed that once the selection of Phase 1 equipment for P5 is completed, purchase orders (PO) will begin.
An industry official familiar with the matter said, “Samsung Electronics has mostly confirmed the semiconductor equipment companies that will build the P5 Phase 1 line, and the process of selecting suppliers for additional lines after Phase 2 is progressing simultaneously,” adding, “Equipment orders for P5 will begin in earnest.”
P5 is an ultra-large fab planned with a three-story structure across six cleanrooms. Its scale is larger than other fabs at the Samsung Electronics Pyeongtaek site, which have a two-story structure (double fab). Samsung Electronics aims to raise the production capacity of P5 by more than 50% compared to existing fabs. The production items will be state-of-the-art DRAM including High Bandwidth Memory (HBM), and it is known that a semiconductor foundry line is also being considered in view of market demand.
Samsung Electronics has also started the process of selecting equipment companies for Phase 2, the second line of P5. When building a semiconductor fab, zones are divided into Phase 1, Phase 2, Phase 3, etc., and established sequentially depending on the purpose of the line or the timing of operation, and this is interpreted as an attempt to advance the operation timing of the line by bringing equipment into Phase 2 quickly as well.
Originally, the target for full operation of the P5 line was known to be 2028, but the first line (Phase 1) is expected to be operational as early as next year. The delivery period (lead time) after ordering the semiconductor equipment is the key. Samsung Electronics requested equipment partners to advance the supply as much as possible.
Such a move is to respond quickly to memory market conditions. Due to the expansion of artificial intelligence (AI) infrastructure investment, the global shortage of memory supply is deepening. Accordingly, it is an attempt to respond to rapidly increasing demand by raising production capacity with a sense of speed. It is a strategic move to preemptively secure memory supply capability ahead of competitors to seize market leadership.
Although Samsung Electronics plans semiconductor fab investments in Yongin, Gyeonggi Province and Gwangju, South Jeolla Province, the Pyeongtaek fab is currently the only place that can expand large-scale production capacity immediately in response to market conditions.
The semiconductor equipment industry is also focusing its attention. As equipment purchases account for 70 to 80% of semiconductor fab costs, massive benefits are expected from the P5 equipment orders.
A semiconductor equipment industry official said, “Samsung Electronics is contacting global and domestic equipment companies simultaneously for large-scale equipment purchases,” adding, “Considering that P5 is a state-of-the-art fab, equipment companies that have secured competitiveness with differentiated performance will get the supply opportunity.”
