Seoul: South Korean chipmakers are ramping up memory production to meet surging demand from artificial intelligence (AI) servers, industry analysts said Sunday, as competition intensifies across the global semiconductor industry. Production capacity is increasingly seen as a key determinant of competitiveness, with AI-related demand expected to continue growing sharply in the coming years. According to Yonhap News Agency, Samsung Electronics has gradually increased utilization rates at its domestic dynamic random access memory, or DRAM, and NAND flash manufacturing lines while expanding output of high-end products, such as high bandwidth memory (HBM). In November, the South Korean tech giant decided to resume construction of the framework for its Line 5 chip production facility at its Pyeongtaek complex, the company's main semiconductor manufacturing hub, located about 60 kilometers south of Seoul. The Line 5 facility is scheduled to begin commercial operations in 2028, strengthening Samsung's ability to mee t rising demand for advanced memory chips. SK hynix is also preparing to start operations at its new M15X fabrication plant in Cheongju, about 110 km south of the capital. The facility will focus on DRAM and other AI-oriented memory products. The company is working to complete construction of the first fabrication plant at the Yongin semiconductor cluster ahead of its original 2027 schedule, a facility comparable in scale to six M15X fabs, according to industry officials. The global DRAM market is projected to reach $170 billion by 2026, up from $100 billion in 2024, according to Omdia.