Samsung Invested 12.26 Trillion Won in Chip Operations
The firm is expanding memory testing and substrate manufacturing capacity to meet rising demand for AI server hardware.
Updated on Oct. 11, 2026 in Semiconductors
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Samsung affiliates have committed 12.26 trillion won to scale up semiconductor testing and substrate production across South Korea and Vietnam. The capital expenditure focuses on expanding capacity for DRAM and NAND flash chips to address server-side AI requirements.
Why it matters
This investment strategy allows the firm to localize high-value manufacturing in Korea while moving conventional assembly to Vietnam. By utilizing global purchase commitments, the company is positioning itself to capture shifting capacity demands within the AI infrastructure market.
The investment includes 6.78 trillion won earmarked specifically for flip-chip ball grid array substrate production, a method of connecting microchips to circuit boards that offers higher density than traditional leaded packages.
The players
Samsung Electronics
A global leader in memory and logic chip fabrication currently scaling backend testing infrastructure.
Samsung Electro-Mechanics
A subsidiary focused on electronic components and specialized substrates for high-density chip packaging.
The details
Samsung Electronics will build memory testing facilities in Thai Nguyen, Vietnam, to handle DRAM and NAND flash final inspection. Samsung Electro-Mechanics is splitting its substrate expansion between a 4.27 trillion won facility in Sejong, Korea, dedicated to high-value components, and a 2.51 trillion won facility in Vietnam. The Vietnamese expansion is financed largely through 63% of reinvested profits from existing regional operations.
Timeline
September 29, 2026: Samsung Electro-Mechanics announced investment plans.
Q4 2027: The first production line is scheduled to start in Vietnam.
2028: The second production line is planned for launch in Vietnam.
September 2028: Mass production is slated to begin at the Sejong, Korea facility.
June 2030: The Vietnamese substrate expansion is targeted for operation.
The Tech Race
This strategy follows the industry-wide move toward specialized server hardware, which necessitates increased capacity for both high-end memory and the substrates that support high-density integration. It marks a push to align backend testing throughput with the rapid growth of AI server-side requirements.
These infrastructure build-outs determine the future availability and cost of memory components for AI server providers. Changes to production workflows are not expected to reach operational maturity until the first testing facility opens in late 2027.
The takeaway
The firm is prioritizing high-value production in Korea while leveraging Vietnamese facilities to handle conventional testing scale. Stakeholders should monitor the Q4 2027 startup milestone as an indicator of whether the company can meet its projected timelines for AI-grade memory delivery.
Further reading
For more on the manufacturing trends driving hardware capacity, visit our Semiconductors section.
Source note: This article includes information reported by The Korea Herald.
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