Samsung Electronics plans to invest approximately 39 trillion Vietnamese dong ($1.5 billion) to build a semiconductor testing factory in Vietnam, according to proposal documents reviewed by Reuters.

The facility, located about 60 kilometres north of Hanoi in Thai Nguyen province, will become Samsung’s first chip-testing plant in Vietnam and is expected to begin operations in November 2027.

The expansion comes as global demand for memory chips continues to surge, fueled largely by rapid growth in artificial intelligence infrastructure and data centers.

According to the proposal, the new factory will focus primarily on testing legacy memory chips, including DRAM and NAND products. While these chips are less advanced than cutting-edge AI semiconductors, shortages have intensified as manufacturers shift more production capacity toward high-end AI chips.

The plant is expected to have annual production capacity of approximately 153.3 billion gigabits of DRAM chips and 255.6 billion gigabits of NAND memory chips.

Samsung has reportedly already started construction work at the industrial park, with more than 200 engineers and workers involved in the project since at least April.

The investment was approved by Vietnamese authorities in March. Proposal documents also indicated Samsung could potentially reinvest profits from the project into a second facility worth up to $2.5 billion in the future.

Vietnam has increasingly become a major global hub for semiconductor back-end operations such as chip assembly, packaging, and testing. The country already hosts semiconductor facilities operated by companies including Intel, Amkor Technology, and Hana Micron.

Samsung is currently the largest foreign investor in Vietnam, with total investments exceeding $23 billion across smartphone, electronics, and manufacturing operations.

The new semiconductor plant is being built adjacent to Samsung’s existing manufacturing complex in Thai Nguyen, where the company produces smartphones and tablets for global markets.

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