Samsung plans $1.5 billion chip testing plant in Vietnam to ease global memory chip shortage

Samsung Electronics Commits $1.5 Billion Investment to Vietnam Expansion

Samsung Electronics is moving forward with plans to invest 39 trillion dong ($1.5 billion) in Vietnam to construct its first chip testing plant in the country, according to a proposal document reviewed by Reuters 1

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. Construction has already begun at an industrial park located 60 kilometers north of Hanoi in Thai Nguyen province, with operations slated to commence in November 2027 2

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. The semiconductor testing plant represents a strategic expansion aimed at addressing the global memory chip shortage that has intensified as AI demand from data center operators severely constrains supplies to industries including smartphones, laptops, and automobiles .

Vietnamese authorities approved the investment in March, and Samsung has indicated intentions to reinvest profits from the project—if any—up to approximately $2.5 billion for a potential second factory 1

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. More than 200 Samsung engineers and staff have been working on the site since at least April, with Reuters reporters observing heavy construction vehicles and workers during a site visit 3

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Targeting Legacy Memory Chips Amid Severe Supply Constraints

The new facility will focus on legacy memory chips, which remain in severe shortage as major producers dedicate more production capacity to manufacturing AI chips 4

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. While less critical for AI supply chains compared to cutting-edge semiconductors, mature memory chips are essential components across multiple industries. The plant will have annual capacity to deliver 153.3 billion gigabits of dynamic random-access memory (DRAM) chips and another 255.6 billion gigabits of NAND memory chips, according to the proposal sent to obtain environmental permits 1

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This production capacity addresses a critical gap in the semiconductor supply chain as robust memory chip demand from AI data center operators continues to constrain availability for traditional electronics. Testing represents the final process in chipmaking, where semiconductors previously assembled and packaged are checked for possible defects before shipment 3

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Vietnam's Growing Role in Semiconductor Back-End Industry

The South Korean group is already the largest foreign investor in Vietnam, having committed more than $23 billion over decades to multiple facilities 1

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. The new plant is being constructed next to a large complex where Samsung Electronics produces smartphones and tablets, creating synergies within the company's Vietnamese operations.

Vietnam has emerged as a major player in the global semiconductor back-end industry, which is more labor-intensive and less sophisticated than chip fabrication 3

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. The country hosts assembling, packaging, and testing plants operated by several multinationals, including Intel, Amkor Technology, and Hana Micron, positioning it as a crucial hub for back-end operations in the global semiconductor ecosystem 1

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The facility's focus on DRAM and NAND memory chips will help diversify Vietnam's semiconductor capabilities while supporting Samsung's strategy to maintain supply chain resilience. As companies navigate ongoing permit processes—Vietnam-based firms often begin initial groundwork while awaiting environmental permits—the project signals confidence in the country's infrastructure and workforce for sophisticated manufacturing operations 3

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. With the November 2027 timeline, industry observers will be watching whether Samsung can meet production targets and potentially trigger the planned second factory investment, which would further cement Vietnam's position in the semiconductor supply chain.