Samsung and SK Hynix unveiled a sweeping investment push that will deploy 800 trillion won ($580 billion) across four new fabs in southwestern South Korea, alongside 81 trillion won ($59 billion) for a semiconductor packaging hub in Chungcheong.
The scale of the buildout is forcing equipment suppliers into a tight corner. Industry sources say competition for EUV lithography systems, etching tools, photomasks, CMP, and deposition equipment will intensify as Samsung and SK hynix ramp capacity alongside TSMC and Intel.
The South Korean government has set a target of doubling domestic DRAM production within five years. Samsung will build its P5 and P6 fabs in Pyeongtaek simultaneously. SK hynix accelerated its Yongin project timeline by 12 years, now targeting the fourth fab for 2033 instead of 2045.
The resulting equipment crunch could disrupt sub-2nm production timelines at TSMC and Intel, though analysts note Samsung’s spending remains concentrated in memory and packaging rather than leading-edge logic. Taiwan’s memory makers are shifting toward process upgrades and niche applications in response.
