Samsung Electronics is weighing a new advanced semiconductor packaging facility in Gwangju, South Korea. The Korea Economic Daily reports the investment plan may be announced during a June 29 meeting with the South Korean president.

The facility aims to strengthen Samsung's position in the high-bandwidth memory (HBM) market. These chips are essential components for artificial intelligence servers.

Increased in-house packaging capacity would allow Samsung to compete more directly with market leader SK Hynix. Advanced packaging has become a critical bottleneck in high-performance chip manufacturing.

Samsung has declined to comment on the potential investment.