Samsung Electronics Co. intends to allocate $4 billion towards the construction of a facility for chip packaging in northern Vietnam, thereby increasing its footprint in the nation as its foremost foreign investor.
These investments in Thai Nguyen province will be rolled out in various phases, with the initial phase involving an expenditure of $2 billion, stated undisclosed sources who requested anonymity due to the sensitive nature of the details.
A Samsung representative refrained from making any comment. Vietnam's Finance Ministry verified it was collaborating on a memorandum of understanding with Samsung regarding schemes for a semiconductor endeavor, according to its statement released on Thursday, without furnishing specific particulars.
Samsung, along with its international competitors, are rapidly scaling up to satisfy the burgeoning need for chips in data centers and devices supported by artificial intelligence functionalities. The South Korean multinational was among the initial investors in Vietnam, establishing its inaugural factory in the northern province of Bac Ninh back in 2008.
Since then, Vietnam has evolved into the corporation’s paramount worldwide smartphone production center, with a subsequent smartphone plant commencing operations in Thai Nguyen province in 2013. As one of Asia’s economies with the most rapid growth, Vietnam has become a manufacturing center as organizations branch out from China in an attempt to mitigate hazards stemming from Beijing’s trade disputes with the United States. In the preceding year, despite anticipations of a downturn amid President Donald Trump’s worldwide tariff strategies, Vietnam established a record for shipments to its primary export marketplace.
As Vietnam's principal exporter, Samsung occupies a central position within the nation's manufacturing environment, creating an extensive supply network encompassing smartphones, components, and increasingly sophisticated domains such as displays and R&D. The firm has been instrumental in transforming Vietnam into a global electronics epicenter, drawing in a community of suppliers and fostering industrial capabilities, although a substantial portion of the value chain is still reliant on imported parts and overseas firms.
According to the official government site, as of 2024, Samsung had invested over $23.2 billion within Vietnam and generated 90,000 employment opportunities for Vietnamese personnel.
During 2022, the company channeled $920 million into its operations located in Thai Nguyen, thereby augmenting its aggregate investment in the Samsung Electro-Mechanics plant to $2.3 billion. Earlier this year, it further pledged to allocate an additional $1.2 billion towards high-tech printed circuit board manufacturing within the province, as per the Finance Ministry.
Source: Bloomberg