AI-driven memory demand fuels P5 plant construction

November 18, 2025 /SemiMedia/ — Samsung Electronics announced on November 16 that it will begin framework construction for its fifth production line (P5 plant) at the Pyeongtaek Complex, District 2. The facility is expected to start operations in 2028 and will focus on producing high-performance memory chips for global AI infrastructure, addressing the growing mid-to-long-term demand in the market.

Shell First” strategy and ecosystem impact

Analysts say that investment in AI infrastructure is rising quickly around the world, pushing sustained demand for high-bandwidth memory, including HBM and server DRAM. Industry experts see Samsung’s P5 plant as a strategic move to reinforce its position in the global memory market and ensure a steady supply of AI-focused storage solutions.

According to sources familiar with the project, the P5 plant will follow a “Shell First” approach: core structures and cleanrooms will be completed first, with production equipment added gradually based on market needs. This phased construction not only reduces upfront investment risks but also allows the plant to ramp up capacity more efficiently once operational.

Samsung emphasized that the P5 plant will not only boost high-performance memory output but also benefit the broader South Korean semiconductor ecosystem. Materials, equipment, and R&D resources will be integrated, strengthening domestic supply chains. The company has previously announced plans to invest roughly 450 trillion won over five years in semiconductors, AI infrastructure, and next-generation technologies, with the P5 facility highlighted as a key project.

With AI applications expanding rapidly and global data volumes surging, memory chip demand is expected to remain strong. The P5 plant is seen as a critical step to ease supply pressures worldwide and to bolster Samsung’s strategic capabilities in AI and high-performance computing.