Samsung starts operations at newest chip plant in Pyeongtaek complex

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Samsung starts operations at newest chip plant in Pyeongtaek complex

Samsung Electronics' chip manufacturing complex in Pyeongtaek, Gyeonggi [SAMSUNG ELECTRONICS]

Samsung Electronics' chip manufacturing complex in Pyeongtaek, Gyeonggi [SAMSUNG ELECTRONICS]

 
Samsung Electronics has kicked off operations of its newest chip plant at its massive manufacturing complex in Pyeongtaek, Gyeonggi, to produce advanced types of memory chips and processors.
 
One of the initial products being produced at the Pyeongtaek Line 3 or P3 factory will be NAND flash chips. The range will later extend to include advanced dynamic random-access memory (DRAM) chips and other processors made using 5-nanometer manufacturing process or lower, according to the chipmaker on Wednesday.  
 
Foundation work for the next factory, P4, also began.
 
Measuring 700,000 square meters (7,534,737 square feet), roughly the size of 25 football stadiums, P3 is the third manufacturing facility in the Pyeongtaek complex. Three more facilities are set to be built.  
 
Built in 2020, the P2 plant has manufactured high-end DRAM chips and processors based on extreme ultraviolet (EUV) lithography and NAND flash chips with high storage capacity.  
 
More than 30 trillion won ($21.6 billion) has been funneled into P2 alone, according to Samsung Electronics. P1, the first factory at the complex, has been producing DRAM and NAND flash memories after it started operations in 2017. The manufacturer invested about 30 trillion won into P1.
 
Samsung Electronics has its root in Giheung, Gyeonggi, home to its first chip plant. But the Pyeongtaek complex has emerged as a primary manufacturing hub due to the state of technology deployed at the site and sheer size.
 
The Pyeongtaek site is nearly the size of the combined complexes in Giheung and Hwaseong, according to the company, and was a stop on U.S. President Joe Biden's itinerary during his visit to Korea in May to meet President Yoon Suk-yeol.
 
"The Pyeongtaek campus is fast emerging as Samsung’s key manufacturing hub for cutting-edge semiconductors ranging from the world's smallest 14-nanometer DRAM and leading-edge V-NAND to sub-5nm logic solutions," said Kyung Kye-hyun, CEO and President of the Device Solutions Division at Samsung Electronics. 
 
The chief of Samsung Electronics semiconductor business also touched upon thorny issues including a downturn in semiconductor demand and a lack of competitiveness in the application processor segment.  
 
“The outlook for the second half is far from good, and next year also shows no signs of recovery,” he said, echoing the warnings from U.S. peers like Micron and Nvidia.  
 
He also admitted that the latest Exynos chips caused problems, the first official mea culpa from a Samsung Electronics executive for criticism that the chipset brand underperforms and shows lower-than-expected yields.
 
“The Exynos, which was made using the first generation of 4 nanometer node, was not properly delivered,” he said, referring to the Exynos 2022 that powered some of the Galaxy S22 series.  
“It is agonizing for us and clients,” he continued, “It’s better not to do if we are unable to get it done properly.”
 
He explained the company is now looking into where it has strength to streamline its focus.  
 
Multiple media outlets reported that Samsung Electronics is unlikely to release new Exynos chips for premium smartphones until 2025 due to recurrent controversies over subpar performance.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]
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