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Samsung Electronics to resume construction of P5 fab in Pyeongtaek next month
Sunday, December 28, 2025 at 11:53 PM
Samsung Electronics is set to resume structural construction of its P5 fab at the Pyeongtaek campus in February. Samsung E&A, the primary contractor, has already updated its contract value to 550 billion won, a 40% increase from the original agreement. The P5 facility is expected to be a triple-story fab, significantly larger than previous sites like P3 and P4, and is aimed at expanding capacity for memory and potentially foundry services by 2028.
Context
Samsung Electronics will resume construction of its P5 fab in Pyeongtaek this February, ending a pause initiated during the 2024 industry downturn. The facility is designed as a three-story "Triple Fab," making its projected scale larger than the P3 and P4 plants combined. This restart signals Samsung's aggressive push to expand capacity for the current memory super-cycle, specifically targeting High Bandwidth Memory (HBM) and advanced foundry services, with a target operation date in 2028.
Contractor Samsung E&A has already reported a 40% increase in its structural contract value, now totaling 550 billion won, with completion for this phase extended to May 2028. Key supply chain partners Samsung C&T and Samsung Heavy Industries are awaiting subsequent contracts for structural and finishing work. This ramp-up in capital expenditure underscores Samsung Electronics' commitment to maintaining a competitive edge in the AI-driven semiconductor market through massive infrastructure scaling.
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