While the semiconductor market has seen signs of a recovery, various industries will make a comeback at a different pace. The volatile economic condition continues to affect major semiconductor companies' plans. Media reported that Samsung Electronics will adjust the construction schedule at its Pyeongtaek Plant 4 (P4) in South Korea.
The news came after the company was said to have suspended the construction of the Pyeongtaek Plant 5 (P5). Industry sources told South Korea-based Seoul Economic Daily that Samsung C&T, which leads construction projects at the Pyeongtaek campus, recently informed its partners that Samsung will adjust a schedule to build the PH2 cleanroom at P4.
Samsung's Pyeongtaek campus is a manufacturing complex that has fabs and produces memories. Plants 1, 2, and 3 are operational, while P4 and P5 are under construction. The PH2 cleanroom at P4 will be dedicated to semiconductor contract manufacturing.
Sources said Samsung plans to build the PH3 cleanroom first for DRAM and other memory production lines. Therefore, it will delay the construction of the PH2 cleanroom. Samsung said it changed the construction plan based on the semiconductor market's current situation.
According to Samsung's financial report for the fourth quarter of 2023, the company's memory business improved thanks to high-added-value products like high-bandwidth memories (HBM). Its foundry still struggled. Samsung's Device Solutions unit lost KRW2.18 trillion (US$1.64 billion).
Besides adjusting the construction schedule at the Pyeongtaek P4, Samsung was previously reported to have temporarily halted construction at the P5. While the company said the suspension was for inspection purposes, some analysts said Samsung is likely altering the schedule of its production facility construction and investment due to its significant loss in the semiconductor business and the sluggish market.
