On November 21, reports emerged that Samsung Electronics Co., Ltd. (SSNLF) plans to increase its DRAM production capacity in response to robust demand from the artificial intelligence (AI) sector.

Earlier this week, a market research report indicated that Samsung Electronics regained its top position in DRAM sales in Q3, surpassing SK Hynix after two quarters. This growth was driven by rising shipments of high-bandwidth memory and higher prices for general DRAM products.

Amid strong AI demand and favorable DRAM pricing, Samsung Electronics is now looking to expand its DRAM output. Reports suggest that global AI infrastructure investments have significantly boosted DRAM demand. To address this surge, the company will convert part of its NAND flash production lines to DRAM production.

The conversion will take place at Samsung’s Pyeongtaek and Hwaseong campuses. Specifically, the company will reduce NAND flash output at Pyeongtaek’s Line 1 and Hwaseong’s facilities while increasing DRAM production. Additionally, Samsung plans to construct a new DRAM-dedicated Line 4 at its Pyeongtaek campus, utilizing advanced manufacturing processes to enhance profitability.