Samsung Electronics committed to converting an LCD plant south of Seoul into an advanced packaging facility for high bandwidth memory (HBM) chips, with production expected to start in late 2027, The Korea Tribune reported.

The company signed an MoU with the provincial government in Cheonan. The LCD factory is owned by Samsung Display.

The move comes as the chipmaker faces rising competition from local rival SK Hynix and questions surface about its fundamental technological competitiveness.

Last month Samsung’s new head of memory business Jun Young-hyun vowed to reorganise the division, with a focus on culture and processes.