Ramping up advanced packaging! Samsung announces a $4 billion investment in Vietnam, with the first phase totaling $2 billion.

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Samsung Electronics plans to build a new chip packaging plant in northern Vietnam, with a total investment of up to $4 billion, further strengthening its strategic presence in Vietnam.

According to Bloomberg citing insiders, the project will be carried out in phases, with the first phase involving an investment of $2 billion. Driven by the global AI wave, demand for chips from data centers and AI terminal devices continues to surge, and Samsung, along with industry peers, is accelerating capacity expansion to address this trend.

Vietnam's Ministry of Finance issued a statement on Thursday, confirming that a memorandum of understanding is being signed with Samsung for a semiconductor project, but no specific details were disclosed.

First phase investment of $2 billion, ramping up advanced packaging

Samsung's $4 billion investment will be implemented in phases in Thai Nguyen, Vietnam, with the initial $2 billion phase taking the lead.

Advanced chip packaging has become a key battleground in the global semiconductor competition. As AI computing power demand explodes, data centers and AI devices are increasingly procuring high-performance packaged chips, and Samsung, along with global peers, are accelerating efforts to compete for capacity and technological advantage in this sector.

In 2013, Samsung established a smartphone manufacturing plant in Thai Nguyen. In 2022, it added another $920 million in investment, bringing the cumulative total to $2.3 billion. Earlier this year, Samsung also pledged another $1.2 billion for the production of high-end electronic circuit boards in Thai Nguyen.

Vietnam: A Core Pillar of Samsung's Global Map

Samsung’s relationship with Vietnam dates back to 2008—when it built its first factory in Vietnam in Bac Ninh Province. Over the past decade, Vietnam has gradually evolved into Samsung's largest global smartphone manufacturing base.

As of 2024, Samsung’s cumulative investment in Vietnam has exceeded $23.2 billion, creating 90,000 local jobs.

As Vietnam’s largest exporter, Samsung is the core anchor of the country’s electronics manufacturing ecosystem, with its supply chain spanning smartphones and components, and extending into screens, research and development, and other higher value-added fields.

However, Vietnam's electronics industry chain is still highly reliant on imported intermediate goods and foreign-funded enterprises; improving local industry support capabilities remains a long-term challenge.

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