(Hanoi, 28th) South Korean semiconductor giant Samsung Electronics is investing about $1.5 billion (approximately RM5.96 billion) to build a new semiconductor testing plant in Vietnam, aiming to alleviate the global memory chip shortage caused by the surging demand for artificial intelligence.
The proposal for this plant was submitted to relevant Vietnamese government departments in April this year. According to documents reviewed by Reuters, the plant is located in an industrial park in Thai Nguyen Province, about 60 kilometers north of Hanoi, adjacent to Samsung Electronics’ large factories producing smartphones and tablets. Construction has already begun, with plans to commence operation in November 2027.
This will be Samsung Electronics’ first chip testing plant in Vietnam, focusing on the testing of traditional chips.
In recent years, data centers for artificial intelligence (AI) have sprung up rapidly, creating strong demand for memory chips. This trend has prompted major manufacturers to shift more production capacity toward AI chip manufacturing, causing a severe shortage in the supply of traditional memory chips used in industries such as smartphones, laptops, and automobiles.
According to the proposal Samsung Electronics submitted for the environmental permit for the new site, the new plant will have the capacity to process and test 153.3 billion gigabytes (GB) of dynamic random access memory (DRAM) chips and 255.6 billion gigabytes of flash memory (NAND) chips annually.
Samsung Electronics is the largest foreign investor in Vietnam, having invested more than $23 billion over several decades. If the new factory is profitable after beginning production, Samsung Electronics plans to allocate up to about $2.5 billion from the profits to build a second factory, demonstrating Samsung's medium- to long-term commitment.
It is not yet clear whether the new plant has obtained all the necessary permits or whether negotiations with authorities are still ongoing. In Vietnam, companies usually begin preliminary groundwork at construction sites while awaiting environmental permits.
Sources reveal that since April this year, over 200 Samsung engineers and staff have been working at the construction site for the new factory. Local security personnel told Reuters that the site is indeed being used to build a Samsung semiconductor plant.
Vietnam is an important participant in the global semiconductor backend industry. Compared to chip manufacturing, backend industries such as packaging and testing are more labor-intensive and have a lower technical threshold. Testing is the final stage of chip manufacturing, during which assembled and packaged semiconductors are inspected for potential defects to ensure products meet shipping standards.
Currently, Vietnam is home to assembly, packaging, and testing plants of several multinational companies, including Intel, Amkor Technology, and Hana Micron.
This will be Samsung Electronics’ first chip testing plant in Vietnam, focusing on the testing of traditional chips.
In recent years, data centers for artificial intelligence (AI) have sprung up rapidly, creating strong demand for memory chips. This trend has prompted major manufacturers to shift more production capacity toward AI chip manufacturing, causing a severe shortage in the supply of traditional memory chips used in industries such as smartphones, laptops, and automobiles.
According to the proposal Samsung Electronics submitted for the environmental permit for the new site, the new plant will have the capacity to process and test 153.3 billion gigabytes (GB) of dynamic random access memory (DRAM) chips and 255.6 billion gigabytes of flash memory (NAND) chips annually.
Samsung Electronics is the largest foreign investor in Vietnam, having invested more than $23 billion over several decades. If the new factory is profitable after beginning production, Samsung Electronics plans to allocate up to about $2.5 billion from the profits to build a second factory, demonstrating Samsung's medium- to long-term commitment.
It is not yet clear whether the new plant has obtained all the necessary permits or whether negotiations with authorities are still ongoing. In Vietnam, companies usually begin preliminary groundwork at construction sites while awaiting environmental permits.
Sources reveal that since April this year, over 200 Samsung engineers and staff have been working at the construction site for the new factory. Local security personnel told Reuters that the site is indeed being used to build a Samsung semiconductor plant.
Vietnam is an important participant in the global semiconductor backend industry. Compared to chip manufacturing, backend industries such as packaging and testing are more labor-intensive and have a lower technical threshold. Testing is the final stage of chip manufacturing, during which assembled and packaged semiconductors are inspected for potential defects to ensure products meet shipping standards.
Currently, Vietnam is home to assembly, packaging, and testing plants of several multinational companies, including Intel, Amkor Technology, and Hana Micron.