Samsung spends US$1.5 billion to build a chip testing plant in Vietnam and is expected to put it into production in November next year

[ Gearbest Technology News]On May 27, according to market news and documents submitted by Samsung to the local government of Vietnam, Samsung Electronics is planning to invest in Vietnam.39 trillion VND (approximately US$1.5 billion)building a new memory chip testing factory. The factory is located in an industrial park about 60 kilometers north of Hanoi. Construction has already started and is expected to be completed in 2018.Officially put into production in November 2027. This will be Samsung's first chip testing factory in Vietnam. Analysts believe that Samsung’s move is aimed at easing the global memory chip supply shortage caused by the explosion of AI demand.

Samsung factory

According to the proposal submitted for environmental clearance for the new site, the new plant's annual production capacity will include153.3 billion gigabit (Gb) dynamic random access memory (DRAM) chipsand additionally255.6 billion gigabit NAND flash memory chips. The investment was approved by Vietnamese authorities in March 2026. It is understood that since April, there have beenMore than 200 Samsung engineers and employeesConduct preliminary work at the project site. During an on-site visit this week, reporters observed a large number of heavy construction vehicles and workers working at the site. A security guard confirmed that the site was a Samsung semiconductor factory.

Samsung

Samsung is not satisfied with just building a factory. Samsung also plans to take up to approximately approximatelyUS$2.5 billionfor potential second factory construction. This shows Samsung’s long-term optimism on Vietnam’s strategic value as its semiconductor back-end manufacturing hub. Samsung declined to comment on the above details.

Relevant documents show that the factory will focus on the production of “traditional chips” (that is, memory products that are not cutting-edge processes). Although its direct importance to the AI ​​supply chain is relatively low, traditional mature memory chips are also facing serious supply shortages as major manufacturers shift more production capacity to AI chip manufacturing. Strong memory chip demand from AI data center operators has severely restricted the supply of smartphones, laptops, automobiles and other industries. Samsung's increased investment in testing factories in Vietnam is expected to alleviate this situation to a certain extent.

Samsung

It is worth noting that this is only part of Samsung’s huge investment blueprint in Vietnam. To date, Samsung has invested more than$23 billionis the country’s largest foreign investor. As early as April this year, it was reported that Samsung planned to invest about 10% in Taiyuan Province in northern Vietnam.$4 billionConstruct a semiconductor packaging and testing factory. The project is planned to be implemented in phases, with an initial investment amount ofUS$2 billionwill become Samsung’s largest single investment in this field since entering Vietnam in 2008.