Samsung Elec considers building chip packaging plant, Korea Economic Daily says

SEOUL, June 9 (Reuters) - Samsung Electronics ‌is considering the ​construction ​of an advanced semiconductor packaging facility in the southwestern South Korean city of Gwangju, the Korea Economic Daily said on Tuesday.

Here are some details:

• ‌Samsung is expected to unveil the investment plan at a meeting between ⁠South Korean President Lee Jae Myung and the heads of the country's largest conglomerates on June 29, ‌the newspaper reported, citing unnamed ‌industry sources.

• The meeting, to be held at the presidential office under the theme of a "major shift in growth strategy," is expected to include Samsung Electronics Chairman ​Jay Y. Lee and SK Group Chairman Chey Tae-won.

• Separately, SK Hynix is also considering building a new chip packaging production facility in the southwestern region, particularly ⁠in South Jeolla Province, daily newspaper Dong-a reported on Wednesday.

• Samsung Electronics and SK Hynix declined to comment. The ​presidential office said corporate investment decisions are matters for companies to determine.

• The move would mark one of Samsung's latest efforts to ​strengthen its advanced chip packaging capabilities, a critical ‌part of the AI chip supply chain as demand surges for high-bandwidth memory chips used in AI servers.

• The Korea Economic Daily said ⁠that Samsung's investment would be seen as a sign that the company is seeking to accelerate spending ahead of what many expect to be an upswing in the chip sector driven ⁠by AI demand.

• Advanced packaging has become increasingly important as chipmakers seek to improve performance by integrating ​multiple chips into a single package. Demand has been particularly strong for HBM, which stacks multiple DRAM chips vertically and is used alongside AI processors from companies such as Nvidia.

• Samsung's customers ‌include major AI players such as Nvidia , AMD and Google, which are driving demand for advanced memory chips used in AI servers ‌and processors.

• Samsung has been expanding its presence in the HBM market as it seeks ⁠to challenge market leader SK Hynix. ‌In May, the company said ​it had begun shipping samples of its latest HBM chip, the 12-layer HBM4E, to customers.

(Reporting by Heekyong Yang; Editing by David Holmes and ‌Mrigank Dhaniwala)

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