Jakarta, INTI - Samsung is reportedly investing US$1.5 billion (approximately Rp26.8 trillion) to build a chip testing facility in Vietnam amid the growing demand for memory chips for the artificial intelligence (AI) sector. The high demand for chips for AI data centers is said to be limiting chip supplies for other sectors such as smartphones, laptops, and automotive.
As reported in Business Korea, Samsung submitted a proposal to the local government last month to obtain environmental permits for the facility's construction. The new facility will be Samsung's first semiconductor testing facility in Vietnam and is located in an industrial area in Thai Nguyen Province, approximately 60 kilometers north of Hanoi.
The Facility will Handle Final Testing Phase
Construction is reportedly underway and is targeted to begin operations in November 2027. Since last month, more than 200 Samsung employees have been stationed at the project site. The facility will handle the chip testing phase, which is the final process in semiconductor manufacturing to ensure there are no defects before products are shipped.
The new plant's annual production capacity is estimated at 153.3 billion gigabytes for DRAM chips and 255.6 billion gigabytes for NAND memory chips.
The facility will reportedly focus production on general-purpose semiconductors or legacy chips. While not as prominent in the AI supply chain as advanced AI chips, demand for legacy chips remains high as big manufacturers prioritize the production of cutting-edge AI chips.
Investment in the facility has received approval from the Vietnamese government since March 2026. Samsung also reportedly plans to reinvest profits from the project and is open to increasing investment to US$2.5 billion if the second phase of the project is implemented.
Samsung is the Largest Foreign Investor in Vietnam
Samsung is currently the largest foreign investor in Vietnam, with total investment commitments exceeding US$23 billion across various facilities in the country. The new factory is also located close to Samsung's smartphone and tablet manufacturing complex.
Vietnam has developed into a major hub for the global semiconductor back-end industry. The back-end process is considered to rely more on human labor with a relatively lower level of technical difficulty compared to the chip manufacturing process or wafer processing.
Besides Samsung, a number of global companies such as Intel, Amkor Technology, and Hana Micron also have chip assembly and testing facilities in Vietnam.
Conclusion
Samsung is reportedly investing US$1.5 billion to build its semiconductor testing facility in Vietnam to meet the surge in demand for memory chips for AI. The plant is targeted to begin operations in November 2027, with a large production capacity for DRAM and NAND chips. The facility will focus on legacy chips, which are in increasing demand as big manufacturers prioritize advanced AI chips. The investment strengthens Vietnam's position as a global hub for the back-end semiconductor industry.
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