Samsung's DRAM production capacity is expected to increase by around 15 percent by the end of the year.
Photo Credit: Samsung
Samsung reportedly established a dedicated task force this month to oversee RAM production
Memory prices have gone up in recent months, driven by increased demand from AI adoption. The rising RAM and component prices also pushed up the cost of several smartphones and other consumer technology products. Now, Samsung is reportedly ramping up its DRAM production capacity to meet this growing demand for RAM. The South Korean tech brand is reportedly expanding the supply of general-purpose DRAM by consolidating production lines at its Hwaseong facility. The move could allow Samsung to meet the rising demand from major technology companies.
South Korean publication Sedaily.com, citing industry sources, reports that Samsung Electronics has formed a dedicated task force (TF) this month to begin construction of a general-purpose DRAM backend fabrication (end fab) facility at the Hwaseong Campus Complex 1 (H1).
An industry source reportedly said that Samsung's general-purpose DRAM production capacity is expected to increase by around 15 percent by the end of 2026 compared to the start of the year. The source added that "If the main fab and end fab are combined in one place, wafers can be transferred to the back-end process line in bulk, which also improves logistics efficiency."
Samsung will reportedly utilise idle cleanrooms at the Hwaseong H1 facility instead of constructing a new plant, which is expected to reduce both costs and construction time and accelerate DRAM production.
This move is considered a strategic step to maximise production capacity for general-purpose DRAM (based on DDR4), whose prices have climbed by more than 80 percent in the first half of the year. With the expansion of production, Samsung is reportedly eyeing to meet the demand from major technology companies, including Apple. Apple is said to be looking for alternative DRAM suppliers in China amid an ongoing memory crunch.
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