Samsung to Build $1.5 Billion Chip Testing Facility in Vietnam

• The facility will have annual capacity of 153.3 billion gigabits of DRAM and 255.6 billion gigabits of NAND memory chips, focusing on legacy chips in severe shortage
• Construction has already begun at an industrial park 60 kilometers north of Hanoi, with over 200 Samsung engineers and staff working on site since April
• Samsung is already Vietnam's largest foreign investor with over $23 billion committed, and this expansion strengthens Vietnam's role as a hub for labor-intensive semiconductor back-end operations

Summary

Samsung Electronics plans to invest $1.5 billion to build a semiconductor testing facility in Vietnam, marking its first chip testing plant in the country. Construction has already commenced at an industrial park 60 kilometers north of Hanoi, with operations scheduled to begin in November 2027.

Key Details

The facility will test legacy memory chips, specifically DRAM and NAND chips, addressing severe shortages across industries including smartphones, laptops, and automobiles. The plant will have annual capacity to deliver 153.3 billion gigabits of DRAM chips and 255.6 billion gigabits of NAND memory chips.

Samsung may reinvest up to $2.5 billion in profits from this project to potentially build a second factory. The investment was approved by Vietnamese authorities in March, and over 200 Samsung engineers and staff have been working on-site since April.

Market Context

The expansion responds to robust AI-driven memory chip demand from data center operators, which has strained supplies for other sectors. While the facility focuses on legacy chips rather than cutting-edge AI semiconductors, mature memory chips remain in severe shortage as major producers prioritize AI chip manufacturing.

Strategic Significance

Samsung is Vietnam's largest foreign investor with over $23 billion committed across multiple facilities. This investment strengthens Vietnam's position as a major hub in the global semiconductor back-end industry, joining other multinationals like Intel, Amkor Technology, and Hana Micron operating assembly, packaging, and testing plants in the country.

The testing facility will perform final quality checks on assembled and packaged semiconductors before shipment to global markets.