Samsung Plans $1.5 Billion Chip Testing Plant in Vietnam

Samsung is jugging two big moves at once. On one hand, it’s expanding its chip footprint overseas. On the other hand, it’s dealing with rising labor expectations at home after a landmark wage agreement that could change how profits are shared.

Samsung said to invest $1.5 billion as AI drives chip demand

According to a report from Reuters, Samsung is planning to invest $1.5 billion in a chip testing plant in Vietnam. The facility will reportedly be built in Thai Nguyen province near Hanoi and is expected to start operations in November 2027. It will be Samsung’s first chip testing site in the country.

This comes as the AI boom keeps the pressure on chipmakers. Demand for memory chips like DRAM and NAND has shot up thanks to data centres, servers, and connected devices. As companies chase high-end AI chips, older or legacy chips are getting harder to find, creating a supply crunch.

Samsung’s upcoming chip plant in Vietnam will focus on testing those legacy memory chips rather than making cutting-edge ones. Testing is the final step before chips are shipped, making it a crucial part of the supply chain. The facility is expected to handle massive volumes annually once it is fully operational.

Samsung already operates a massive manufacturing network in Vietnam, which has become one of its biggest production hubs globally. The company currently runs six factories, an R&D centre in Hanoi, and a sales entity across the country. Its Bac Ninh and Thai Nguyen complexes mainly produce Galaxy smartphones, tablets, and wearables for global markets.