Investing.com -- Samsung Electronics is evaluating plans to build an advanced semiconductor packaging facility in Gwangju, a city in southwestern South Korea, the Korea Economic Daily reported Tuesday.

The company may announce the investment plan at a June 29 meeting between South Korean President Lee Jae Myung and leaders of the country's largest conglomerates, the newspaper said, citing unnamed industry sources. The meeting at the presidential office will focus on a major shift in growth strategy.

Samsung Electronics Chairman Jay Y. Lee and SK Group Chairman Chey Tae-won are expected to attend the meeting.

The potential facility would reportedly support Samsung's efforts to expand its advanced chip packaging operations, which have become a critical component of the AI chip supply chain. Demand has increased for high-bandwidth memory chips used in AI servers.

Advanced packaging allows chipmakers to combine multiple chips into a single package to improve performance. HBM technology stacks multiple DRAM chips vertically and is used alongside AI processors from companies including Nvidia.

Samsung supplies chips to major AI companies such as Nvidia, AMD and Google, which use advanced memory chips in AI servers and processors.

The company has been working to expand its position in the HBM market, where it competes with market leader SK Hynix. In May, Samsung said it started shipping samples of its 12-layer HBM4E chip to customers.