In a strategic move to enhance its position in the high-bandwidth memory (HBM) market, Samsung Electronics is making significant investments in advanced packaging technologies. The company is upgrading its facilities in Cheonan, South Korea, and Suzhou, China, to bolster its HBM competitiveness. Reports indicate that Samsung secured contracts worth approximately KRW20 billion (US$14.32 million) in the third quarter of 2024 to drive this expansion.

Samsung's semiconductor packaging operations are primarily based in Onyang, Cheonan, and Suzhou. To accommodate growing demand, the company is exploring additional capacity at its Samsung Display Cheonan plant. These initiatives underscore Samsung's commitment to strengthening its foothold in the expanding HBM market.

In South Korea, Samsung is accelerating its domestic expansion efforts. The company has signed an agreement with South Chungcheong Province and Cheonan City to build the country's largest advanced packaging facility. Construction is set to begin in December 2024 on a 280,000-square-meter site leased from Samsung Display, focusing on next-generation HBM products such as HBM3E and HBM4, with completion expected by late 2027.

Globally, Samsung is preparing to launch its Advanced Packaging Lab (APL) in Yokohama, Japan, by the end of 2024. The facility, under construction since late 2023, will focus on high-value chips for next-generation HBM, AI, and 5G communications. Samsung has allocated JPY40 billion (US$260.1 million) for the project through 2028, investing in clean rooms, workforce expansion, and advanced packaging innovations.

According to Yole Développement, Intel and TSMC lead global advanced packaging investments in 2024, with market shares of 32% and 27%, respectively. Samsung's strategic investments in advanced packaging aim to enhance its competitiveness in the HBM market, positioning the company to meet the growing demand for high-performance memory solutions.