Samsung to Set Up $1.5 Billion Semiconductor Testing Plant in Vietnam
Samsung Electronics intends to allocate 39 trillion dong ($1.5 billion) in Vietnam to establish a semiconductor testing facility, according to its proposal document, a move that will assist in alleviating the worldwide shortage of memory chips fueled by rising AI demand.
The new factory, construction of which has already commenced in an industrial park located 60 kilometres (37 miles) north of Hanoi, is expected to begin operations in November 2027, according to reports.
This would mark Samsung's initial chip testing facility in Vietnam. Strong demand for memory chips from AI data center operators has significantly limited availability for sectors like smartphones, laptops, and automobiles.
The document indicated that the factory would concentrate on legacy chips. Although not as crucial for AI supply chains, mature memory chips are facing significant shortages as leading manufacturers allocate more production capacity to AI chip manufacturing.
The proposed plant would have a yearly capacity to produce 153.3 billion gigabits (Gb) of dynamic random-access memory (DRAM) chips and an additional 255.6 billion Gb of NAND memory chips, as per the application submitted to secure environmental permits for the new location.
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Information regarding the scale of Samsung's investment in the initiative, production capacity, and timing of production has not been disclosed before. Samsung chose not to provide a comment.
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Vietnamese authorities approved the investment in March, and Samsung plans to reinvest project profits, "if any," up to approximately $2.5 billion for a possible second factory, the document stated.
It remains uncertain if the factory has secured all required permits or if discussions with the authorities are still in progress. In Vietnam, companies frequently start preliminary construction tasks at building sites as they wait for environmental permits.
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Over 200 engineers and personnel from Samsung have been engaged at the project's location since at least April, as per reports.