Samsung Plans 1.5 Billion USD Chip Testing Plant in Vietnam
- tech360.tv
- May 28
- 2 min read
Samsung Electronics plans to invest 39 trillion dong, or 1.5 billion USD, in Vietnam to build a semiconductor testing plant. The proposal document shows this expansion will help ease a global shortage of memory chips driven by surging artificial intelligence demand.
Construction has already begun for the new factory in an industrial park 60 kilometres north of Hanoi. The facility is slated to start operations in Nov. 2027.
This facility would be the first chip testing factory for Samsung in Vietnam. Robust memory chip demand from artificial intelligence data centre operators has severely constrained supplies to industries such as smartphones, laptops, and automobiles.
The factory would focus on legacy chips. While less critical for artificial intelligence supply chains, mature memory chips are also in severe shortage as major producers dedicate more of their production capacity to manufacturing artificial intelligence chips.
The new plant would have annual capacity to deliver 153.3 billion gigabits of dynamic random-access memory chips, and another 255.6 billion gigabits of NAND memory chips. This information comes from the proposal sent to obtain environmental permits for the new site.
Vietnamese authorities approved the investment in March. Samsung intends to reinvest profits from the project, if any, up to about 2.5 billion USD for a potential second factory.
More than 200 Samsung engineers and staff have been working on the site of the project since at least April. Heavy construction vehicles and workers were observed on the site during a visit this week.
The South Korean group is already the largest foreign investor in Vietnam, having committed more than 23 billion USD over decades to multiple facilities. The new plant is being built next to a large complex where Samsung Electronics produces smartphones and tablets.
Vietnam is a major player in the global semiconductor back-end industry, which is more labour-intensive and less sophisticated than chip fabrication. The country hosts assembling, packaging, and testing plants of several multinationals, including Intel, Amkor Technology, and Hana Micron.
Testing is the final process in chipmaking. In this process, semiconductors previously assembled and packaged are checked for possible defects before shipment.
Samsung Electronics plans to invest 1.5 billion USD to build its first semiconductor testing plant in Vietnam.
The factory is under construction 60 kilometres north of Hanoi and is slated to start operations in Nov. 2027.
The facility will focus on legacy chips to help ease a global shortage caused by shifting production capacities toward artificial intelligence chips.
Source: REUTERS
