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Samsung Electronics is planning to invest nearly USD 1.5 billion in Vietnam to set up its first semiconductor testing plant in the country, according to proposal documents reviewed by Reuters. The facility, being developed near Hanoi, is expected to begin operations in 2027 and will focus on testing DRAM and NAND memory chips. The move comes as global demand for memory chips continues to rise due to rapid expansion in AI data centres. The project also strengthens Vietnam’s role in the global semiconductor supply chain, where it has already emerged as a key hub for chip assembly, packaging and testing operations.
Samsung Electronics is planning to invest around 39 trillion Vietnamese dong, or nearly USD 1.5 billion, in a semiconductor testing plant in Vietnam, according to proposal documents reviewed by Reuters. The investment is expected to support the growing global demand for memory chips, particularly as AI-related infrastructure continues to expand. Advertisement
The new facility is being developed in an industrial park located about 60 kilometres north of Hanoi. Construction activity has already started at the site, and the plant is expected to begin operations in November 2027, as per documents submitted to local authorities earlier this year for environmental approvals.
This will be Samsung’s first chip testing facility in Vietnam. The plant is expected to handle testing operations for DRAM and NAND memory chips, both of which are widely used in smartphones, laptops, servers and automotive systems. Demand for these chips has increased sharply due to rapid investments in AI data centres globally, resulting in supply pressure across several electronics sectors.
The proposal document stated that the factory would mainly focus on legacy or mature chips. Although these chips are less advanced compared to high-end AI semiconductors, they continue to remain in short supply as major chipmakers allocate more manufacturing capacity towards AI-focused products.
According to the proposal, the facility will have an annual capacity of around 153.3 billion gigabits of DRAM chips and 255.6 billion gigabits of NAND memory chips. Details related to Samsung’s planned investment size, production targets and timeline had not been publicly reported earlier.
Samsung declined to comment on the development. Authorities in Thai Nguyen province, where the project is located, also did not issue any official response to Reuters’ queries.
The documents further showed that Vietnamese authorities approved the investment proposal in the past few months. Samsung may also reinvest profits generated from the project into a possible second factory, with potential additional investments of up to USD 2.5 billion.
Reports indicated that more than 200 Samsung engineers and staff members have already been working at the project site since at least April. Reuters reporters visiting the location during the past week observed construction vehicles and active groundwork at the site. A security official at the location also confirmed that the project was related to Samsung’s semiconductor operations.
Samsung is currently Vietnam’s largest foreign investor, with investments exceeding USD 23 billion across multiple manufacturing facilities over the years. The upcoming semiconductor plant is being built close to Samsung’s existing production complex in the country, where the company manufactures smartphones and tablets.
Vietnam has steadily expanded its position in the semiconductor back-end manufacturing sector, which includes chip assembly, packaging and testing operations. The country already hosts facilities operated by global companies such as Intel, Amkor Technology and Hana Micron.
Testing is considered the final stage in semiconductor manufacturing, where chips are checked for defects and performance before being shipped to customers. Industry analysts have noted that countries such as Vietnam are becoming increasingly important in global chip supply chains as companies diversify manufacturing operations outside traditional semiconductor hubs.
Source Reuters
5th Jun, 2025
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