A render of SK hynix’s M17 plant, which is to be built in Cheongju, North ChungcheongSK HYNIX
P5. Y2. M17. The cryptic strings could pass off as game consoles, concept cars or even classified intelligence reports. Instead, they belong to Korean chip plants taking on new importance as the AI boom puts semiconductor supply in the spotlight.
Samsung Electronics is targeting 2028 for full-scale operations at its P5 plant in Pyeongtaek, Gyeonggi, according to semiconductor industry sources on Sept. 23.
The "P" stands for "Pyeongtaek," and the number marks the plant’s place in the construction sequence. P1 began operations in 2017, followed by P2 and P3. P4 has begun operating some lines and is adding more equipment.
A render of the planned appearance of the chip cluster in Yongin, Gyeonggi, upon completionSK HYNIX
Samsung plans to make P5 a production hub for next-generation high bandwidth memory (HBM) and dynamic random-access memory (DRAM), then replicate its structure with a new plant dubbed P5 2.
The chipmaker's memory lines in Giheung and Hwaseong, both in Gyeonggi, also take their names from their locations, using “K” for Giheung, whose first Korean character is sometimes romanized as “K,” and “H” for Hwaseong, followed by numbers.
Samsung calls its contract chipmaking lines S1, S2 and S3, while its dedicated extreme ultraviolet (EUV) line in Hwaseong is known separately as V1. For the foundry lines, “S” is short for “System,” while the “V” used for the EUV line is derived from the initialism.
The company divides its operations by location. Giheung and Hwaseong focus on front-end production and research and development, while Cheonan and Onyang in the Chungcheong region specialize in back-end processes such as packaging and testing.
“The naming system varies depending on the site, the period and the nature of the business,” a Samsung representative said.
Rival SK hynix has committed 19.1 trillion won ($14 billion) to its M17 plant in Cheongju, North Chungcheong, where the first clean room is expected to open in December 2028. It will invest another 35.2 trillion won in its Y2 plant in Yongin, Gyeonggi, which is slated to open its first clean room in June 2029.
At SK hynix, “M” stands for “Manufacture,” while the number serves as an identifier for each plant.
It has M10, M14 and M16 in Icheon, Gyeonggi, home to its headquarters, and M11, M15 and M15X in Cheongju, North Chungcheong. M15X is an expansion plant built near M15, with the “X” standing for “eXtension.”
A semiconductor fab is under construction in Yongin, Gyeonggi, on Aug. 11.JOINT PRESS CORPS
For SK hynix, the numbering is not sequential.
Icheon is SK hynix’s main DRAM production base, while Cheongju produces both DRAM and NAND flash.
M15X in Cheongju makes DRAM for HBM. The planned M17 plant in Cheongju is expected to produce NAND for products including enterprise solid-state drives.
SK hynix named its Yongin plants Y1 and Y2 after the city to distinguish them from its existing plants in Cheongju and Icheon. Y2 will reportedly focus on next-generation DRAM, including chips for HBM.
Fab locations are determined by a mix of power and water supplies, access to workers, supply chains and government incentives.
Samsung operates a foundry in Austin, Texas, and is building a plant in nearby Taylor to produce chips including Tesla’s next-generation AI6 AI chip. The ability to share infrastructure with Austin, along with local government support, helped steer the project to Taylor.
In China, Samsung produces NAND in Xi’an and handles back-end processes in Suzhou.
SK hynix’s China operations span three cities. Wuxi produces conventional DRAM, Dalian handles NAND flash production and Chongqing focuses on NAND back-end processing.
Workers head toward the construction site of a Samsung Electronics chip factory in Pyeongtaek, Gyeonggi, on June 1, 2023.KIM SEONG-RYONG
Just as important as a factory’s name is where it stands in the construction and production cycle, as a fab can take years to move from groundbreaking to mass production.
“Completion” means construction of the building and supporting infrastructure is done. “Clean room opening” means the environment necessary for production equipment is in place. The equipment is then moved in, hooked up to power and gas, fine-tuned and put through trial runs. “Operation” broadly refers to the point when production equipment is running and is preparing for mass production, while “ramp-up” is the process of gradually increasing output.arge fabs are typically built out in phases, with clean rooms and equipment added in stages. That allows mass production to run in one section while construction continues in another.
Another option is the “Shell First” approach, under which chipmakers secure the basic structure and exterior first and install clean rooms and equipment in line with demand. This approach lets chipmakers secure buildings that take years to complete while pacing costly equipment investments with demand.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
