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Samsung Electronics is pushing to move up the operational start of its first semiconductor fab at the Yongin national industrial complex to 2029. That is roughly two years earlier than the originally anticipated 2031, part of a plan to secure next-generation artificial intelligence (AI) chip production capacity ahead of schedule.
According to industry sources on the 12th, Samsung Electronics has set a 2029 operational target for the first (Y1) of a total of six fabs to be built at the Yongin national complex and is advancing the related project. This timeline was reportedly also discussed at the "Mega-Project Public-Private Joint Review Meeting" held on the 6th under the president's chairmanship.
To bring Y1 online in 2029, site preparation work must begin in the second half of this year at the latest, and fab construction must start next year. Because building an advanced chip plant typically takes two years, follow-up procedures such as site preparation, compensation for obstructions, expropriation rulings, and contractor selection must also proceed without setbacks.
Building out core infrastructure such as power and water is another key variable that will determine the 2029 startup. In line with Samsung Electronics' accelerated timeline, the government plans to move up construction of a 3-gigawatt (GW) liquefied natural gas (LNG) power plant being pursued near the Yongin national complex. If the second- and third-phase power supply and the phased water supply schedules are also shortened, the 2029 operational plan for the first Yongin fab is expected to gain momentum.
An earlier startup of the first fab would also accelerate Samsung Electronics' expansion of advanced chip production capacity. The company's current capacity reaches 650,000 wafers per month, and it is projected to grow to 720,000 next year and 770,000 the year after, reaching 920,000 per month by 2028. With the first Yongin fab in operation, some project total capacity could exceed 1 million wafers per month.
An industry official said, "If the fab's operational timing is moved up, we can respond more quickly to surging AI chip demand," adding, "The effect of energizing the domestic semiconductor ecosystem will also appear faster than expected."
Meanwhile, Samsung Electronics announced on the 29th of last month that it would invest 2,030 trillion won in building the Pyeongtaek-Yongin semiconductor cluster and 400 trillion won in two fabs in Gwangju. The industry projects that Samsung Electronics' capital expenditure (CAPEX) will increase 30–40% annually over the next three years.
