Samsung Restarts Fifth Pyeongtaek Fab as AI Memory Demand Surges
Samsung is expanding its Pyeongtaek chip hub as AI lifts memory demand, restarting a fifth fab to challenge SK Hynix and supply GPU memory through 2028.
Summary
Samsung is expanding its semiconductor complex in Pyeongtaek, South Korea, to supply the stacked specialized memory used with GPUs in generative AI systems. As of October 20, 2026, three fabs operate around the clock, a fourth is coming online, and construction of a fifth has restarted after being halted during the 2024 memory downturn. The campus, bordered by rice paddies south of Seoul, covers roughly the area of New York City’s Central Park and employs thousands of construction workers.
Samsung expects memory demand to surge through 2028 and is trying to recover ground lost to domestic rival SK Hynix in high bandwidth memory for Nvidia AI accelerators. TSMC remains dominant in foundry manufacturing for externally designed chips. The crowded site emphasizes safety around heavy equipment, chemicals and extreme heat. Choi Hye-rin, a 35-year-old safety officer overseeing cable-duct crews, earns 140,000 won, or $97, daily and expects sustained work. Hundreds of women work on site, many as spotters for heavy machinery, while shuttle routes, restaurants, short-term rentals and home sales connect the project to surrounding communities including Songtan.
Positives
- Three Pyeongtaek fabs operate around the clock, with a fourth coming online to expand Samsung’s memory capacity.
- Construction of a fifth fab has restarted after AI demand reversed the memory-chip downturn that halted work in 2024.
- Samsung expects surging memory demand through 2028, supporting continued production investment and construction employment.
- Choi Hye-rin earns 140,000 won, or $97, daily and says Pyeongtaek pays more than other construction sites.
- Thousands of workers support nearby restaurants, rentals, real estate offices and shuttle services around Pyeongtaek and Songtan.
Risks & concerns
- SK Hynix has overtaken Samsung in high bandwidth memory used by Nvidia AI accelerators.
- TSMC continues to dominate the foundry market for manufacturing chips designed by other companies.
- The fifth fab’s 2024 suspension shows Samsung’s expansion remains exposed to sharp swings in memory demand.
- Extreme heat, crowded work zones, heavy machinery and chemical handling create persistent safety risks at the construction site.