Samsung Vietnam Investment Expands Chip Testing Capacity

Samsung Electronics plans to invest 39 trillion dong ($1.5 billion) in Vietnam to build a semiconductor testing plant, according to a proposal document reviewed by Reuters. The move is expected to support global memory chip supply as demand surges due to artificial intelligence applications.

Construction of the factory has already started at an industrial park about 60 kilometres north of Hanoi. Moreover, the facility is scheduled to begin operations in November 2027.

Samsung To Open First Chip Testing Plant In Vietnam

The planned site will become Samsung’s first semiconductor testing factory in Vietnam. The project reflects growing demand for memory chips from AI data centre operators, which has tightened supplies for industries including smartphones, laptops and automobiles.

According to the proposal document sent to local authorities in April, the factory will focus on legacy chips. Although these mature chips are less central to AI systems, shortages have intensified as manufacturers allocate more production capacity to advanced AI chips.

The facility is expected to produce 153.3 billion gigabits of dynamic random-access memory (DRAM) chips annually. In addition, it will have capacity for 255.6 billion gigabits of NAND memory chips each year.

Samsung declined to comment on the investment size, production plans or project timeline.

Vietnam Strengthens Role In Global Chip Supply Chain

Vietnamese authorities approved the investment in March. Furthermore, Samsung plans to reinvest profits from the operation, if any, up to roughly $2.5 billion for a possible second factory, the document showed.

It remains unclear whether all required permits have been secured. However, companies in Vietnam often begin preliminary construction work while awaiting environmental approvals.

A person familiar with the project said more than 200 Samsung engineers and employees have worked at the site since at least April. Reuters reporters visiting the area this week observed construction vehicles and workers on site, while a security guard confirmed the location would host a Samsung semiconductor facility.

Samsung is already Vietnam’s largest foreign investor, having committed more than $23 billion to projects across the country over several decades. The new semiconductor plant is being built near an existing Samsung complex that manufactures smartphones and tablets.

Vietnam Emerges As Chip Back-End Manufacturing Hub

Vietnam has become an important player in the global semiconductor back-end industry, which includes chip assembly, packaging and testing. These processes are generally more labour-intensive and less technologically advanced than semiconductor fabrication.

Several multinational companies already operate facilities in the country, including Intel, Amkor Technology and Hana Micron.

Testing represents the final stage of semiconductor production. During this process, chips that have been assembled and packaged undergo inspections for potential defects before shipment.

With inputs from Reuters