February 23, 2024 /SemiMedia/ -- According to reports, in order to compete with TSMC and improve efficiency in response to market demand, Samsung is adjusting its fab expansion progress.

The report pointed out that Samsung Semiconductor is adjusting the construction progress of the P4 fab in Pyeongtaek, South Korea, to prioritize the construction of the PH2 production line and suspend the construction of new production lines at the P5 wafer fab.

According to public information, Pyeongtaek, South Korea, is Samsung's main semiconductor manufacturing center, an important base for Samsung's foundry business, and an important memory production base. The existing P1, P2 and P3 wafer fabs in Pyeongtaek are already in production, and the P4 and P5 fabs are under construction.

The report also pointed out that after the construction of the P5 fab in Pyeongtaek was suspended, Samsung transferred its resources to the PH2 production line of the P4 fab to specialize in foundry business. Samsung hopes to expand its foundry capacity and win more customers from TSMC. The P4 fab will also build a PH3 production line to produce DRAM, etc.

According to industry insiders, the reason why Samsung adjusted its construction plan is due to the recent increase in market demand, and Samsung hopes to be prepared to meet market demand.