Samsung to Make $4 Billion Chip Packaging Facility in Vietnam

Samsung is taking a new step to solidify its presence in Southeast Asia. The company plans to invest $4 billion to make a chip packaging facility in northern Vietnam. This move could help the Korean firm meet rising demand for cutting-edge chips used in smartphones, data centers, and AI systems.

Samsung sees Vietnam as a key hub for chip packaging investment

Samsung will carry out the $4 billion investment in multiple phases, with the first phase to reach around $2 billion. The facility is planned for Thai Nguyen province in northern Vietnam. The country’s finance ministry confirmed that it is planning a semiconductor project with Samsung. However, key details about the agreement or timeline still remain under wraps.

“The ministry is ​coordinating with other ministries and agencies to finalize and ​submit to the Prime Minister the Memorandum of Understanding between the Government of Vietnam and Samsung Group regarding the group’s ​semiconductor manufacturing project in Vietnam,” said the ministry.

For several years, Samsung has made a strong presence in Vietnam. The company set up its first smartphone production factory in Bac Ninh province in 2008. Later, it opened another plant in Thai Nguyen in 2013. Over time, Vietnam has become the largest global hub for phone manufacturing.

Samsung, as the largest exporter, now plays a big role in Vietnam’s manufacturing ecosystem. The company supports a large supply chain that includes smartphones and other components. Moreover, higher-value activities, such as displays and research and development (R&D), are also part of its operations in the country.

Meanwhile, Samsung’s foundry plant in Taylor, Texas, has reportedly moved from construction to equipment setup and commissioning. The company could begin mass production of advanced chips next year. This could include Tesla’s next-gen AI chips, including the AI5 and AI6 models. Another facility at the Taylor site has reportedly entered the early planning stage following approval from the Taylor City Council.