Samsung Electronics is expanding its investments in domestic and overseas production bases to strengthen its advanced semiconductor packaging business. Packaging encompasses the technology and processes for shaping semiconductor chips to fit the devices they will be mounted on. As the importance of in-house packaging processes for next-generation high-bandwidth memory (HBM) products like HBM4 increases, Samsung is focusing on enhancing its packaging capabilities to secure future technological competitiveness and narrow the gap with SK Hynix.

According to industry sources on Nov. 19, Samsung Electronics signed a contract in the third quarter to sell and purchase semiconductor equipment for the purpose of expanding production facilities at its Suzhou plant (SESS) in China. The contract is valued at approximately 20 billion won.

The Suzhou plant is currently Samsung Electronics' only overseas test and packaging production base, and this move is seen as a choice for innovation in packaging processes and production efficiency. During the period of equipment transactions, Vice President Lee Jung-sam, who was in charge of the Global Manufacturing & Infrastructure General Test & Package (TP) Center, was appointed as the head of the Suzhou plant, a position that had been vacant since the end of last year.

Samsung is also accelerating the expansion of domestic packaging production bases. Recently, the company signed an investment agreement with South Chungcheong Province and Cheonan City to expand semiconductor packaging process facilities. The agreement includes the construction of advanced packaging facilities for HBM at a 280,000㎡ site in Cheonan, leased from Samsung Display, by the end of 2027.

Samsung Electronics currently operates packaging production bases at the Cheonan and Onyang campuses. Due to continuous facility investments, the Onyang campus has reached saturation, prompting the company to consider establishing a new packaging line for HBM mass production in Cheonan. The expansion of stacking processes in Cheonan is proportional to the production capacity of HBM DRAM. The new line in Cheonan is expected to produce the latest HBM, including 5th generation (HBM3E) and 6th generation (HBM4).

Samsung is also establishing an advanced packaging research and development (R&D) system. The company plans to operate the Advanced Packaging Lab (APL) in Yokohama, Japan, which has been under construction since the end of last year, within this year. Since early this year, Samsung has been setting up the APL office, expanding its workforce, and establishing clean rooms, with plans to invest 40 billion yen (approximately 360 billion won) by 2028. The lab will focus on technologies for high-value chips used in next-generation HBM, artificial intelligence (AI), and 5th generation (5G) mobile communications.

The expansion of packaging bases is a strategy to narrow the gap with SK Hynix, the leader in HBM. Notably, the packaging method required for the next-generation product HBM4 is changing as the main stack changes from the existing 8-layer to 12-layer. Previously, the 2.5D method placed the graphics processing unit (GPU) and HBM horizontally, but from HBM4 onwards, there is a shift to the 3D method, stacking HBM on top of the GPU.

Another significant change is the shift to customer-tailored mass production. This means that the ability to implement the performance required by customers using advanced packaging technology becomes a key selection criterion. For HBM4 packaging, Samsung is currently developing various advanced packaging technologies, including hybrid bonding technology necessary for producing 12-layer and 16-layer products.

An industry insider stated, "As Samsung aims for a turnaround with the 6th generation HBM, it will continue efforts to widen the gap in packaging technology and mass production capabilities."