News
Samsung accelerates Pyeongtaek P4 and P5 fab construction to expand AI chip capacity
Friday, February 27, 2026 at 01:34 AM
Samsung Electronics is accelerating the construction of its Pyeongtaek P4 and P5 fabs, with P5 FAB2 seeking early equipment move-in by May 2029. Supported by a 2.5 trillion won low-interest loan from the National Growth Fund, Samsung aims to bring forward fab operations from 2030 to 2028 to boost HBM and AI foundry capacity. The P5 site will also feature a dedicated data center for automated semiconductor design and process optimization, while P4 Phase 3 is nearing production readiness.
Context
Samsung Electronics is aggressively accelerating construction at its Pyeongtaek Campus, shifting fabs P4, P5, and P6 into an "all-out sprint" to capitalize on the semiconductor supercycle. Supported by a KRW 2.5 trillion low-interest loan from the National Growth Fund, the company has pulled forward the equipment activation timeline for the P5 fab from 2030 to 2028. This three-story mega-fab is central to Samsung’s strategy for next-generation HBM and AI foundry services. Construction on P5 is already two months ahead of schedule, while P6 targets its first occupancy permit by May 2029.
This expansion aligns with bullish sentiment from Macquarie, which recently raised its target price for Samsung Electronics to KRW 340,000. The bank forecasts that DRAM and NAND prices could double by Q1 2026, positioning Samsung as the primary beneficiary of the industry upcycle. By compressing timelines and deploying a new data center for autonomous operations, Samsung aims to secure a dominant lead in global semiconductor capacity over the next three years.
Related Companies
Macquarie
MQG
Samsung Electronics
005930