The global semiconductor industry is set to enter a new Warring States era, as Samsung Electronics and SK hynix unveiled a sweeping investment push in South Korea. According to The Elec, the two memory giants will jointly deploy 800 trillion won to build four new fabs in the country’s southwest, alongside another 81 trillion won dedicated to a semiconductor packaging hub in the Chungcheong region.

Notably, the ripple effects are expected to extend beyond memory. As reported by Economic Daily News, the aggressive capacity expansion could ease the current severe supply shortage, while simultaneously sharpening competition with TSMC and Intel over critical semiconductor manufacturing equipment.

Rising Samsung–SK hynix Capex Tightens Chip Tool Supply

The Elec reports that the South Korean government plans to double domestic DRAM production capacity within five years. Against this backdrop, Samsung Electronics will proceed with simultaneous construction of its P5 and P6 fabs in Pyeongtaek, the report notes.

Meanwhile, SK hynix’s Yongin project timeline is also being significantly accelerated. According to Chosun Biz, the completion schedule has been advanced by 12 years from the original plan, with the fourth fab now targeted for 2033 instead of 2045.

Thus, semiconductor equipment suppliers cited by the Economic Daily News said Samsung and SK hynix’s aggressive capex will tighten competition for key advanced manufacturing tools—including EUV, etching, photomask, CMP, and deposition equipment—as they ramp capacity alongside TSMC and Intel. The resulting equipment crunch could disrupt TSMC’s and Intel’s pace of scaling sub-2nm production, the report notes.

While Samsung Electronics may benefit from bundling HBM and NAND supply with foundry services to attract AI chip demand, industry sources cited by Economic Daily News do not expect the latest investment cycle to materially shift the foundry landscape, as the company’s spending remains concentrated in memory, packaging, and infrastructure, leaving leading-edge logic production anchored by TSMC and CoWoS-based capacity.

Taiwan Memory Players Shift Toward Process Upgrades, Niche Applications

On the other hand, a separate Economic Daily News report notes that Samsung and SK hynix’s aggressive expansion move also puts Taiwan’s memory makers on high alert.

As noted by the report, Taiwan’s major memory players—including Nanya Technology, Winbond, PSMC, and Macronix—are also raising capital spending, but are focusing on process upgrades and niche applications, adopting a defensive strategy rather than competing head-on with Korean rivals on scale.

For instance, the report notes that Nanya Tech has budgeted more than NT$52 billion in capital spending this year to support product upgrades and meet supply chain demand.

According to the report, the company is expected to complete validation of its more advanced 1C (third-generation 10nm-class) 16Gb DDR5 in the second half of the year, while its 1D (fourth-generation 10nm-class) 16Gb DDR5 has already entered pilot production in the second quarter. In parallel, Nanya is reportedly working with customers on customized HBM solutions.

Read more

• [News] Samsung, SK hynix, Micron Face U.S. Class-Action Lawsuit Over Alleged DRAM Supply Manipulation
• [News] SK hynix Advances DRAM and NAND Roadmap, Targets 3x Wafer Output by 2034, 375-Layer NAND at Year-End

(Photo credit: Samsung)