Boosting Advanced Packaging! Samsung Announces US$4 Billion Investment in Vietnam, Initial Phase at US$2 Billion

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

According to Bloomberg, citing sources familiar with the matter, the project will be advanced in phases, with an initial investment of US$2 billion. Driven by the global AI wave, demand for chips from data centers and AI terminal devices continues to surge, and Samsung and its peers are accelerating capacity expansion to meet this trend.

Vietnam's Ministry of Finance announced on Thursday that it is signing a memorandum of understanding with Samsung on a semiconductor project, but did not disclose specific details.

Initial Investment of US$2 Billion to Boost Advanced Packaging

Samsung's US$4 billion investment will be implemented in phases in Thai Nguyen, Vietnam, with the first phase of US$2 billion to be launched first.

Advanced chip packaging has become a critical battleground in global semiconductor competition. With the explosive demand for AI computing power, data centers and AI devices are increasingly procuring high-performance packaged chips. Samsung and its global peers are accelerating their pace to compete for capacity and technological advantages in this field.

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

Vietnam: A Core Pillar of Samsung's Global Footprint

Samsung's relationship with Vietnam dates back to 2008, when Samsung established its first factory in Vietnam's Bac Ninh province. Over the past decade, Vietnam has gradually evolved into Samsung's largest smartphone manufacturing base globally.

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

As Vietnam's largest exporter, Samsung is a core anchor of Vietnam's electronics manufacturing ecosystem, with its established supply chain spanning smartphones and components, and extending to higher value-added areas such as displays and R&D.

However, Vietnam's electronics industry chain currently remains highly dependent on imported intermediate goods and foreign-invested enterprises, and improving the domestic industrial support capacity remains a long-term challenge.