Samsung Expands Chip Testing Capacity in Vietnam, Enhances High-End Production in South Korea
Samsung plans US$9.15 billion investment in chip operations with major testing expansion in Vietnam and advanced memory production boost in South Korea.
Samsung’s affiliates have announced a combined investment of 12.26 trillion won (US$9.15 billion) to grow chip manufacturing and testing capacities, allocating nearly 8 trillion won towards expanding memory chip testing facilities in Vietnam while increasing high-end production in South Korea.
Quick Skim
Memory Chip Testing Capacity Expanded in Vietnam
Samsung Electronics intends to invest 105.79 trillion Vietnamese dong (US$4.09 billion) in a memory chip testing centre located at Yen Binh Industrial Park, Thai Nguyen, northern Vietnam. The facility will focus on final testing of DRAM and NAND flash chips packaged at Samsung’s Cheonan plant, with production lines expected to commence operations in the fourth quarter of 2027 and an additional line in 2028.
The investment will not involve wafer fabrication, preserving Korean sites for producing advanced memory products. Industry experts interpret the move as shifting conventional memory testing overseas while retaining high-value memory production such as high-bandwidth memory within Korean facilities.
Substrate Capacity Growth and Production Allocation
Samsung Electro-Mechanics revealed an investment plan of 6.78 trillion won to expand flip-chip ball grid array substrate capacity, vital for connecting high-performance processors in AI servers. The funding is split between Sejong, South Korea (4.27 trillion won), and Vietnam (2.51 trillion won), with mass production targeted by September 2028 and June 2030 respectively.
Sejong will concentrate on high-value and technically demanding substrates, whilst Vietnam will handle rising global demand. Existing advanced substrate production already occurs in Vietnam, indicating some overlap. The expansions are supported by customer commitments reducing investment risks.
Implications for Production and Operations
The expanded overseas testing capacity may allow Samsung greater flexibility in its production footprint while raising logistical and coordination requirements between Vietnam and Korea. Though it remains unclear whether the new Vietnamese testing lines will supplement or replace current Korean operations, the division reflects a strategy to focus high-end production domestically.
Samsung has invested in workforce development, sending 103 Vietnamese engineers for training in South Korea to support operational integration. However, industry sources highlight that without a robust local supply chain and manufacturing ecosystem in Vietnam, its role may remain confined to additional production rather than fully localised semiconductor manufacturing.
Samsung’s investments signify ongoing efforts to optimise production capacity and respond to growing demand for advanced memory and substrate technologies amid the evolving semiconductor landscape in the Asia-Pacific region. Future developments will be shaped by how effectively Samsung deepens local supply participation and manages cross-border operations.
