This composite photo shows the logos of Samsung Electronics and SK Hynix/Yonhap.
South Korean chipmakers are ramping up memory production to meet soaring demand for artificial intelligence (AI) servers, industry analysts said on Sunday, as competition intensifies across the global semiconductor industry.
AI-related demand is expected to continue to grow rapidly in the coming years, and production capacity is increasingly seen as a key determinant of competitiveness.
Samsung Electronics is gradually increasing the utilization rate of its domestic dynamic random access memory (DRAM) and NAND flash production lines, and expanding production of high-end products such as high-bandwidth memory (HBM).
In November, the South Korean tech giant decided to resume construction of the framework for its Line 5 chip production facility at its main semiconductor manufacturing base, the Pyeongtaek factory in Gyeonggi Province. The Line 5 facility is scheduled to begin commercial operations in 2028, strengthening Samsung's ability to meet the growing demand for advanced memory chips.
SK Hynix is also preparing to start operations at its new M15X manufacturing plant in Cheongju, North Chungcheong Province. The facility will focus on DRAM and other AI-oriented memory products.
According to industry sources, the company is working to complete construction of the Yongin Semiconductor Cluster's first manufacturing plant ahead of the original schedule of 2027, which will be comparable in size to six M15X plants.
According to Omdia, the global DRAM market is expected to reach $170 billion by 2026, up from $100 billion in 2024.
