Samsung plans to invest $1.5 billion in Vietnam to build a chip testing factory.

Samsung Electronics plans to invest 39 trillion Vietnamese dong to build a semiconductor testing factory in Vietnam. The proposal documents show that this expansion will help alleviate the global memory chip shortage caused by the surge in demand for artificial intelligence. According to documents submitted to the local government in April, the new factory has started construction in an industrial park 60 kilometers north of Hanoi, and is expected to start operations in November 2027. This will be Samsung's first chip testing factory in Vietnam. The strong demand for memory chips from AI data center operators has severely restricted the supply in industries such as smartphones, laptops, and cars. The factory will focus on traditional chips. Despite the lower importance of the AI supply chain, mature memory chips are facing a severe shortage as major manufacturers redirect more production capacity to AI chip manufacturing. According to the proposal submitted for environmental approval for the new site, the annual capacity of the new factory will include 153.3 billion gigabits of dynamic random-access memory chips, as well as an additional 255.6 billion gigabits of NAND flash memory chips. The investment has been approved by Vietnamese authorities in March, and Samsung plans to use up to $2.5 billion of the profits generated by the project for the potential construction of a second factory. It is currently unclear whether the factory has obtained all necessary permits or is still negotiating with the authorities. In Vietnam, companies typically conduct preliminary foundation construction on the construction site while waiting for environmental permits. A source revealed that since April, more than 200 Samsung engineers and employees have been working at the project site.