Samsung Fast-Tracks Yongin Chip Hub as Record Profit Fails to Halt Stock Slump

Samsung moves Yongin fab groundbreaking to 2029, earlier than expected, as record profit fails to lift stock 24% off peak. Galaxy Unpacked and Q2 earnings loom.

Samsung Electronics has pulled forward the groundbreaking of its first chip fabrication plant in Yongin, South Korea, to 2029 — one to two years earlier than market expectations — just as the company’s stock price nurses a nearly 24% decline from its June peak. The accelerated timeline, confirmed by industry sources on July 12, is part of a broader national push to secure advanced semiconductor capacity for artificial intelligence. The Yongin complex, which will ultimately host six factories, sits at the centre of a 2.030 quadrillion won investment plan spanning Pyeongtaek and Gwangju as well.

The expansion push lands during a paradoxical moment for Samsung. The company posted a preliminary operating profit of 89.4 trillion won for the second quarter — roughly 19 times the year-ago figure and the highest quarterly profit ever reported by any technology company — yet the stock has been hammered. Shares closed at 285,000 won on Friday, a 2.70% bounce from the previous day that did little to erase a weekly loss of 7.92%. At the current level, the stock sits 23.90% below the all-time high of 374,500 won reached on June 19.

The disconnect between record earnings and downward pressure follows a classic “buy the rumor, sell the news” pattern. Institutional investors unloaded shares after the preliminary results were released, sending the stock down nearly 7% on the day of the announcement. The market had already priced in the profit surge, leaving little room for upside once the figures were confirmed.

Two events in the coming fortnight could reset the narrative. On July 22, Samsung will hold its Galaxy Unpacked event in London, where the Galaxy Watch9 is widely expected to debut with enhanced health features. That launch was preceded on July 12 by the announcement of a partnership with the Neuroscape research centre at the University of California, San Francisco, focusing on brain health and cognitive decline — a sign the company is pivoting from fitness tracking toward medical-grade wearable capabilities. Then, on July 30, management will release the full quarterly breakdown at an investor conference, offering details on segment performance, HBM4 sales, and third-quarter guidance.

Speeding up the Yongin timeline underscores Samsung’s urgency in capturing the AI hardware boom. The cluster will serve as a next-generation manufacturing site, and the earlier construction dovetails with South Korean government policy that prioritises strategic national projects. Meanwhile, the memory cycle continues to drive Samsung’s profitability. The average selling price of DRAM and NAND surged 146% in the first quarter versus the 2025 annual average, and analysts estimate DRAM contract prices climbed another 60–70% in Q1 followed by roughly 30% in Q2, for a combined increase of around 130%.

A new variable enters the equation this quarter: HBM4. Samsung has begun commercial shipment of this next-generation memory standard, meaning Q2 could be the first period in which HBM4 revenue is recognised. The stock’s path back toward its record high may hinge on updates regarding HBM4 deliveries, memory pricing momentum, and whether the company can demonstrate that the supply chain is validated and scaling.

Technically, the shares are 6.05% below their 50-day moving average of 303,340 won but still 57.33% above the 200-day average of 181,142.50 won, keeping the long-term uptrend intact. The 14-day relative strength index of 43.9 signals neutral territory after the recent pullback. Some analysts flag 280,000 won as a critical support level; a break below that could invite further correction. The annualised 30-day volatility of 98.58% suggests sharp swings remain likely on any fresh chip price or supply-chain headlines.

With a market capitalisation equivalent to roughly €1.093 trillion, Samsung remains one of Asia’s heavyweight technology names. The next two weeks will test whether its dual strategy — pouring capital into AI chip capacity while expanding into medical-grade wearables — can reignite the momentum that carried the stock to its June zenith.