Samsung breaks ground on Onyang HBM packaging hub as Cheonan runs out of room
Samsung Electronics has broken ground on a new high-bandwidth memory (HBM) packaging facility at its Onyang campus in Asan, South Korea, investing 46 trillion won ($34 billion) to address space constraints at its nearby Cheonan site.
The groundbreaking ceremony took place on November 12, 2026, as Samsung seeks to expand its back-end capacity for advanced AI memory production. The decision comes as its Cheonan campus faces physical space limitations, prompting the company to develop Onyang as a second major production base.
Expansion details
The project will add five HBM packaging lines with construction expected to increase cleanroom space to approximately 31,000 square meters. Total campus floor space will grow from 270,000 to 420,000 square meters—a 55% expansion—directly addressing the space constraints at Cheonan.
Operations at the new facility are now slated to begin in June 2028, one year earlier than previously planned, as Samsung accelerates its response to growing demand.
Market context
Cheonan has been under capacity pressure for some time, forcing Samsung to shift equipment and outsource some conventional memory module work. The Onyang project, which has operated since 1991 handling conventional semiconductor assembly, represents the largest portion of Samsung's 60 trillion won broader Chungcheong semiconductor initiative.
HBM for AI servers has been persistently tight, and shortages are projected to continue through 2028.
Strategic importance
The investment aligns with South Korea's "Three Great Leap Mega Projects" program, highlighting the central role of chip manufacturing in the country's economic strategy. Samsung's new capacity specifically targets the gap between customer demand and current contract supply, which is expected to persist through 2028.
Key developments to watch include progress on Line 5 construction, whether the June 2028 operational target remains on schedule, and how much of Cheonan's outsourced conventional memory work will be brought back in-house once Onyang becomes operational.
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