Samsung Electronics plans to invest 39 trillion dong (approximately $1.5 billion) in Vietnam to build a semiconductor testing plant, according to a proposal document, News.Az reports, citing Reuters.

The expansion is expected to help ease a global shortage of memory chips driven by surging demand from artificial intelligence applications.

Construction of the new facility has already begun in an industrial park located about 60 kilometres (37 miles) north of Hanoi. The plant is scheduled to begin operations in November 2027, according to the document sent to local authorities in April and reviewed by Reuters.

The facility would be Samsung’s first chip testing plant in Vietnam. Strong demand for memory chips from AI data centre operators has significantly tightened global supply, affecting industries such as smartphones, laptops, and automobiles.

The plant will focus on legacy chips. Although these mature memory chips are less critical for AI supply chains, they are also experiencing shortages as major manufacturers shift more production capacity toward AI-related chips.

According to the proposal submitted for environmental permitting, the factory will have an annual capacity of 153.3 billion gigabits (Gb) of dynamic random-access memory (DRAM) chips and 255.6 billion Gb of NAND memory chips.

Details regarding the investment size, production capacity, and timeline had not previously been reported. Samsung declined to comment on the matter.

The People’s Committee of Thai Nguyen province, which hosts the industrial park, also did not respond to requests for comment.

Vietnamese authorities approved the investment in March, and Samsung plans to reinvest profits from the project—if any—up to approximately $2.5 billion for a possible second factory, according to the document.

It remains unclear whether the facility has obtained all necessary permits or whether discussions with authorities are still ongoing. In Vietnam, companies often begin initial construction work while awaiting environmental approvals.

More than 200 Samsung engineers and staff have reportedly been working at the site since at least April, according to a person familiar with the matter, who requested anonymity because the information is private.

Samsung is already the largest foreign investor in Vietnam, having invested more than $23 billion over decades in multiple facilities. The new plant is being built adjacent to a large complex where Samsung Electronics manufactures smartphones and tablets.

Vietnam plays an important role in the global semiconductor back-end industry, which is more labour-intensive and less technologically advanced than chip fabrication. The country hosts assembly, packaging, and testing facilities operated by several multinational companies, including Intel, Amkor Technology, and Hana Micron.

Chip testing is the final stage of semiconductor manufacturing, where previously assembled and packaged chips are checked for defects before being shipped, according to the proposal document.

News.Az 

By Nijat Babayev