In recent weeks, the semiconductor industry has witnessed a significant upturn, driven largely by the surging demand for storage chips associated with the rapid advancements in artificial intelligence (AI). Major players in this field, including tech giants Samsung Electronics and Micron Technology, are responding to this burgeoning market need by ramping up their production capabilitiesIn a notable development, Samsung has announced plans to restart construction at its new Pyeongtaek factory (P5) as early as the third quarter of 2024. Concurrently, Micron is actively establishing both high-bandwidth memory (HBM) testing and production lines at its headquarters in Boise, Idaho, while also eyeing the prospect of HBM production in Malaysia to cater to the escalating demands brought on by the AI revolution.

Samsung's Resumption of the New Pyeongtaek Factory (P5)

Reports from international media outlets have disclosed that Samsung is gearing up to resume foundational construction activities at its P5 plant

The anticipated timeline projects a restart by the third quarter of 2024, with completion potentially slated for April 2027, although the actual operational launch may occur even earlierPrevious disclosures indicated that construction at P5 was halted at the end of January this year, with Samsung citing the suspension as a temporary measure aimed at harmonizing project timelines and indicating that investments had not yet been fully allocated.

Experts in the industry interpret Samsung's decision to recommence construction at the P5 facility as a strategic maneuver to address the heightened chip demand driven by the AI boomThe P5 facility is distinctive, boasting eight clean rooms that position it well ahead of the P1 through P4 factories, each equipped with only four clean roomsThis expanded capacity is set to enable Samsung to fulfill the market's escalating production requirements

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However, further details concerning the specific applications of P5 have yet to be officially disclosed.

In a recent internal management meeting held by Samsung's board of directors on May 30, the agenda concerning the P5 construction was approved, signaling a formal commitment to move forward with the projectSamsung's Vice President and Head of DRAM Products and Technology, Hwang Sang-joong, announced earlier this year that the company expects its HBM production to triple compared to the previous yearSamsung's roadmap suggests that HBM shipments could increase to 13.8 times the volumes of 2023 by 2026, with projections indicating a further escalation to 23.1 times by 2028.

Micron's Establishment of HBM Testing and Production Lines in the U.S.

On June 19, multiple media outlets reported that Micron Technology is in the process of building HBM testing and production lines at its Boise headquarters

Compounding this initiative, Micron is exploring opportunities to establish HBM production in Malaysia to meet the escalating demands spurred by AI advancementsMicron’s Boise wafer fabrication plant is expected to commence operations in 2025, with DRAM production slated to kick off the following year.

Micron has set ambitious targets for its HBM market share, aspiring to increase it from a modest “middle single-digit” percentage to around 20% within the next yearTo enhance its production capabilities, Micron has already embarked on multiple expansions across various locationsBy late April, Micron officially announced via its website that it had secured $6.1 billion in government grants under the CHIPS and Science ActThis significant funding, along with additional state and local incentives, is directed towards supporting the construction of a cutting-edge DRAM memory manufacturing facility in Idaho, as well as two advanced DRAM facilities in Clay, New York.

Construction at the Idaho facility commenced in October 2023, with Micron projecting an operational start date in 2025 and a formal launch of DRAM production in 2026. The production volume will be adjusted in accordance with the growth in industry demand

The New York project is currently moving forward with preliminary designs, field studies, and necessary permit applications, including NEPAThe construction of this wafer fabrication plant is projected to begin in 2025, with commercial output expected to start in 2028, responding dynamically to market demands over the ensuing decadeThe company’s press release underscored the vital role of federal subsidies in facilitating Micron's aspiration to lead the domestic semiconductor manufacturing landscape with a total capital investment of approximately $50 billion by 2030.

In May, Japanese media outlets reported that Micron is poised to invest between ¥600 billion to ¥800 billion to establish an advanced DRAM chip manufacturing facility in Hiroshima, utilizing extreme ultraviolet (EUV) lithography technologyThis facility is anticipated to break ground in early 2026, with the earliest completion targeted for late 2027. The Japanese government has already approved subsidies amounting to ¥192 billion to support Micron’s endeavors in Hiroshima and the production of next-generation chips.

Micron's new Hiroshima factory will be located adjacent to its existing Fab 15 and will focus exclusively on DRAM production, excluding backend packaging and testing, with an emphasis on HBM products.

In another strategic move, Micron inaugurated its second smart factory for assembly and testing in Penang, Malaysia, in October 2023. This facility represents an initial investment of $1 billion, complemented by a subsequent $1 billion expansion to enhance the building area to 1.5 million square feet following the successful establishment of the first facility.