Samsung Electronics plans to invest 39 trillion dong ($1.5 billion) in Vietnam to construct a semiconductor testing plant, as detailed in a proposal document reviewed by Reuters.
This facility, located 60 kilometers north of Hanoi, is set to begin operations in November 2027 and will focus on legacy memory chips, which are currently in short supply due to increased production of AI chips by major manufacturers. The new plant aims to produce 153.3 billion gigabits of dynamic random-access memory and 255.6 billion gigabits of NAND memory annually.
The investment has already been approved by Vietnamese authorities, and Samsung may reinvest up to $2.5 billion in profits for a potential second factory. Although construction has commenced, it remains unclear if all necessary permits have been secured.
Samsung, the largest foreign investor in Vietnam with over $23 billion committed to various projects, is expanding its presence in a country that plays a significant role in the global semiconductor back-end industry, which includes assembly, packaging, and testing processes.
The establishment of this testing plant is crucial as it will help alleviate supply constraints affecting various sectors, including smartphones and automobiles