Samsung Electronics has put forward a plan to invest 39 trillion dong, equivalent to $1.5 billion, to build a semiconductor testing plant in Vietnam, according to a company proposal sent to local authorities and reviewed by reporters. Construction has already begun at an industrial park located roughly 60 kilometres north of Hanoi, and the project is slated to commence operations in November 2027.
The site would mark Samsung's first dedicated chip testing facility in Vietnam. The company's proposal, submitted to secure environmental permits for the site, outlines annual output targets of 153.3 billion gigabits (Gb) of dynamic random-access memory (DRAM) and 255.6 billion Gb of NAND memory. The plant would concentrate on mature or legacy memory chips, the document shows.
Demand for memory chips has surged, driven in part by AI data center operators. This increased appetite for AI-capable components has placed strain on supplies of memory used across smartphones, laptops and automobiles, contributing to shortages even for less advanced memory products. The proposed Vietnam testing plant is positioned to address shortages in mature memory chips as major manufacturers prioritize production for AI applications.
Vietnamese authorities approved the investment in March, the proposal states, and Samsung indicated it could reinvest profits from the project — if any - up to about $2.5 billion toward a potential second factory. The document does not make clear whether all necessary permits have been finalized; it notes the environmental permit request that was used to disclose production capacity and timelines.
On-the-ground signs point to active work. More than 200 Samsung engineers and staff have reportedly been on the site since at least April, according to a person briefed on the matter who requested anonymity. Journalists visiting the area observed heavy construction machinery and workers on site, and a security guard confirmed the location would host a Samsung semiconductor facility. The provincial People's Committee that administers the industrial park did not respond to a request for comment, and Samsung declined to provide a statement.
The new testing plant is being built adjacent to a large complex where Samsung manufactures smartphones and tablets. Samsung already stands as the largest foreign investor in Vietnam, having committed more than $23 billion over multiple decades to operations in the country.
Vietnam occupies a significant role in the global semiconductor back-end sector, which centers on assembling, packaging and testing - operations that are generally more labour-intensive and less technically complex than wafer fabrication. The country hosts assembling, packaging and testing facilities operated by several multinational firms, including Intel, Amkor Technology and Hana Micron.
According to the proposal, testing is the final stage of chip production, during which assembled and packaged semiconductors are inspected for defects prior to shipment. The document supplied the specific annual capacity figures for DRAM and NAND production that the plant would be equipped to handle.
Construction timelines and capacity details disclosed in the proposal have not been reported previously. The company's documentation also notes that companies in Vietnam sometimes begin initial groundworks while permits are still pending, a practice reflected by visible activity at the site.
Exchange-rate information included in the proposal indicates $1 equals 26,339 dong.
Detailed project snapshot
- Investment: 39 trillion dong ($1.5 billion)
- Location: Industrial park 60 kilometres north of Hanoi
- Planned operations start: November 2027
- Annual capacity (proposed): 153.3 billion Gb DRAM; 255.6 billion Gb NAND
- Reinvestment plan: Up to about $2.5 billion from project profits for a potential second factory
Context from the proposal and site reporting
The plan, disclosed via an environmental permit submission, provides the most detailed account to date of Samsung's intended investment scale, production capacity and timeline for this Vietnam project. Observations at the site and reports of staff presence corroborate that preparatory work is already under way, even as formal permitting details remain unclear.