Samsung may outsource more DDR5 and SSD production

Samsung Electronics is shifting additional production of conventional memory modules to outsourced partners, according to TechRadar. The company is directing capacity growth for DDR5 modules and SSDs to external firms while reserving internal space for HBM packaging and other advanced memory work.

Industry sources say Samsung lacks room to expand back-end production lines needed for artificial-intelligence semiconductors. It is reallocating space and equipment at plants in Cheonan and Onyang to advanced packaging. Partners including Dreamtech, Hanyang Digitech, and SFA Semicon are expanding in response.

Dreamtech began mass-producing DDR5 modules in India last November. Its Noida facility, previously used for smartphone circuit-board assembly, is expected to reach annual capacity of over 50 million units. Hanyang Digitech has invested more than 31.5 billion won in 2026 to automate its memory-module plant in Vietnam.

SFA Semicon is moving DDR5 testing and assembly equipment from Samsung's Onyang campus to a new site in the Philippines. The transition starts in November, with a second phase in the second quarter of 2027. Samsung is also building a 6 trillion won HBM plant and a separate $1.5 billion back-end facility in Thai Nguyen Province. Micron has taken a similar approach, while whether SanDisk follows remains uncertain.