Samsung Electronics plans to invest about 39 trillion dong, roughly $1.5 billion, to establish its first semiconductor testing factory in Vietnam, according to a company proposal document. Construction has begun at an industrial park in Thai Nguyen province, located about 60 km north of Hanoi, and the plant is planned to start operations in November 2027.
The new facility will be dedicated to testing legacy DRAM and NAND memory chips. Those memory products continue to be relatively scarce as major chipmakers reallocate more manufacturing capacity toward high-end semiconductors used in artificial intelligence applications. The proposed plant aims to address a portion of that shortage by increasing testing throughput for established memory technologies.
Per the company document, the factory's annual testing capacity would total 153.3 billion gigabits for DRAM and 255.6 billion gigabits for NAND. Those capacity figures reflect the scale Samsung envisions for the back-end testing operations at the Thai Nguyen site.
Vietnamese authorities approved the investment in March. The proposal also indicates Samsung is considering reinvesting profits from the initial project to develop a potential second factory, which could be valued at up to $2.5 billion.
Vietnam has become an important hub for semiconductor back-end work, hosting packaging and testing operations run by multiple firms. The country already accommodates chip packaging and testing facilities operated by international contractors, reflecting its expanding role in global semiconductor supply chains.
Summary
Samsung will spend about 39 trillion dong to build a memory chip testing plant in Thai Nguyen province, Vietnam, with construction underway and operations expected by November 2027. The facility will test legacy DRAM and NAND chips and is designed with annual capacities of 153.3 billion gigabits for DRAM and 255.6 billion gigabits for NAND. Vietnam approved the investment in March, and Samsung may reinvest profits into a second factory worth up to $2.5 billion.
Key points
- Samsung intends to invest about 39 trillion dong (approximately $1.5 billion) in a semiconductor testing facility in Vietnam.
- The Thai Nguyen plant will concentrate on testing legacy DRAM and NAND chips, with annual capacities of 153.3 billion gigabits (DRAM) and 255.6 billion gigabits (NAND).
- Vietnam approved the investment in March, and Samsung is evaluating reinvesting profits for a potential second factory valued at up to $2.5 billion.
Risks and uncertainties
- Timing risk - the plant's planned operational start in November 2027 creates a multi-year timeline that could face delays or changes before commissioning.
- Market demand and capacity utilization - the facility is sized for large annual gigabit throughput for DRAM and NAND; actual utilization will depend on future demand for legacy memory chips as production shifts toward AI-focused semiconductors.
- Investment expansion conditionality - the creation of a second factory valued at up to $2.5 billion depends on Samsung's decision to reinvest profits, which is not guaranteed.