Samsung Builds Advanced Foundry Fab in Giheung

Samsung Electronics has begun a major transformation of its Giheung Campus in Yongin, Gyeonggi Province, to establish an advanced foundry hub focused on artificial intelligence (AI) technology. The objective is to turn the site into a center for producing and packaging core components for high bandwidth memory (HBM), which necessitates advanced foundry processes.

According to industry reports on November 4, Samsung Electronics has chosen to construct a 2-nanometer (nm) and 4-nanometer class advanced foundry facility on the site of the former Samsung Advanced Institute of Technology (SR5) and College of Engineering (CDI) buildings, which were recently demolished. The new complex will consist of a green building, a Kairos complex building, and a substation, with Samsung E&A handling engineering, procurement, and construction (EPC).

The decision to build an advanced foundry fab in Giheung stems from the growing demand for HBM, driven by the rapid expansion of the AI data center market. Industry projections anticipate Samsung Electronics' HBM supply (on a bit basis) to rise by an average of 52% annually for three years until 2028, as HBM orders from major tech companies increase.

Currently, the production of HBM4 (6th generation) core dies is taking place at the Hwaseong and Pyeongtaek campuses, while base dies, manufactured using a 4-nanometer foundry process, are being produced on select production lines in Hwaseong and Pyeongtaek. Should the advanced foundry fab be constructed in Giheung, it is anticipated that the base die supply capacity will expand in tandem with the core die production volume at Hwaseong and Pyeongtaek.

The Giheung Campus, established in 1983, is the birthplace of Samsung Electronics' semiconductor legacy. The campus houses Line 6, which employs 8-inch (200mm diameter) wafers, and the S1 Line, which utilizes 12-inch (300mm) wafers. Line 6 primarily produces legacy semiconductors, such as image sensors, display driver ICs, and power semiconductors, while the S1 Line is dedicated to manufacturing mobile processors (AP) and automotive system-on-chips (SoC).

Samsung Electronics named the task force responsible for the Giheung Campus reorganization 'Kairos,' after the Greek god of opportunity. The first step of Project Kairos involves building a 2-nanometer and 4-nanometer advanced foundry fab on the site of the demolished research building and engineering college. This fab, dubbed the Kairos fab, will consist of four production zones, similar to the new Pyeongtaek plant.

Project Kairos also plans to convert a portion of Line 6 into an advanced packaging facility, which is a critical back-end process technology that assembles multiple chips vertically or horizontally to create finished HBM products. The estimated investment for the Kairos fab is around $19.23 billion, which includes approximately $6.15 billion to $7.69 billion for extreme ultraviolet (EUV) lithography machines, the core equipment required for advanced processes, and additional cleanroom construction and manufacturing equipment.

Once all costs, including the conversion of Line 6 into an advanced packaging facility, are taken into account, the total investment could reach approximately $23.08 billion.