Samsung’s reported KRW 12.26 trillion (about $9.15 billion) semiconductor plan is two investments, not one factory: Samsung Electronics is planning a memory-chip testing operation in Thai Nguyen, Vietnam, while Samsung Electro-Mechanics is expanding FC-BGA package-substrate capacity in Vietnam and Sejong, South Korea. The projects cover different affiliates, technologies and timetables.
What the $9.15 billion Samsung investment includes
The combined figure was reported by The Economic Times in an ANI report on October 12, 2026, citing The Korea Herald. Nearly KRW 8 trillion (reported as $5.99 billion) is earmarked for Vietnam. Because the headline combines separate projects, its dollar total should not be read as spending on a single semiconductor plant.
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| Affiliate | Project | Location | Reported investment | Planned milestone |
|---|---|---|---|---|
| Samsung Electronics | Back-end testing of packaged DRAM and NAND memory | Yen Binh Industrial Park, Thai Nguyen, Vietnam | VND 105.7944 trillion; Seoul Economic Daily reported this as about KRW 5.48 trillion or $3.9 billion | V1 operation in Q4 2027; V2 in October 2028 |
| Samsung Electro-Mechanics | FC-BGA package-substrate capacity | Sejong, South Korea, and Vietnam | KRW 6.78 trillion ($5.08 billion reported): KRW 4.27 trillion in Sejong and KRW 2.51 trillion in Vietnam | Sejong mass production targeted for September 2028; Vietnam completion and operation targeted for June 2030 |
The conversions differ between reports, so the original won and dong amounts are the more precise figures. Samsung Electro-Mechanics’ won-denominated totals also appeared in an official newsroom search result, although the detailed newsroom page was unavailable when the timing was checked.
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The Thai Nguyen project is planned for Yen Binh Industrial Park, in the same broader complex as Samsung’s smartphone operations. Seoul Economic Daily reported a site area of 265,895 square metres and two planned lines. The V1 line is expected to receive equipment in July 2027 and begin operating in the fourth quarter of 2027. V2 is scheduled to receive equipment in May 2028 and start in October 2028. These are reported targets, not completed construction milestones.
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In semiconductor manufacturing, front-end wafer fabrication forms memory circuits on silicon wafers. The Vietnamese operation is a back-end facility: it would test packaged DRAM and NAND chips before shipment. Testing includes final electrical checks and tests under stress conditions. Calling it a “Samsung chip plant” is therefore imprecise if readers understand plant to mean a wafer-fabrication site.
Samsung Electronics reportedly established Samsung Vietnam Semiconductor (SVS), a back-end chip unit, in March 2026 and submitted project documents to Thai Nguyen authorities. The stated strategic rationale is to diversify export routes, improve resilience if Korean test bases face disruption and retain flexibility as tariffs change. Those aims do not guarantee that the facility will prevent supply interruptions.
How the FC-BGA expansion differs
Samsung Electro-Mechanics’ project is separate from Samsung Electronics’ memory-testing plan. FC-BGA, or flip-chip ball grid array, is a package substrate that connects high-performance processors to circuit boards. Demand is rising as AI servers use larger and more complex processor packages.
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The reported plan assigns higher-value, technically demanding products to the expanded Sejong operation, while the Vietnam site is intended to handle growing global orders. That is a description of the planned positioning, not a disclosed final production mix. Sejong mass production is targeted for September 2028; the Vietnam expansion is targeted for completion and operation in June 2030.
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Why Samsung is distributing work between Korea and Vietnam
The investment places different stages of the supply chain in locations suited to each project. Korean sites remain associated with advanced, high-value semiconductor and packaging work, while Vietnam adds overseas testing and substrate capacity. Seoul Economic Daily quoted Inha University professor Joo Seung-hwan, in an English edition identified as AI-translated from Korean, saying Samsung’s Vietnam operations are “transforming from an assembly base for smartphones and home appliances reliant on low wages into a core pillar of the AI chip supply chain.”
Joo also assessed that Samsung could concentrate products such as high-bandwidth memory in Cheonan and Onyang while shifting commodity memory to Vietnam. That is his analysis, not a Samsung allocation announcement. The translated publication warns that English quotations may not exactly match the Korean original.
Workforce preparation and project financing
Seoul Economic Daily reported that Samsung sent 103 Vietnamese engineers to its Cheonan and Onyang sites for practical semiconductor training beginning in July 2026. The training indicates preparation for technical operations, but it does not establish how many employees the Thai Nguyen facility will ultimately hire.
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The same report said VND 66.6401 trillion—about 63% of the Vietnam testing project’s stated cost—is expected to come from reinvested profits after the local business becomes profitable. This is a reported financing plan, not money already spent or secured.
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What remains unknown
- Samsung has not disclosed how memory-testing volumes will be divided between Vietnam and Korea.
- The effect on existing Korean test operations is therefore uncertain.
- Available reports do not establish the eventual share of Vietnamese suppliers.
- The published schedules are targets; they do not confirm equipment installation, qualification or commercial output.
- The combined $9.15 billion figure uses reported currency conversions and covers two affiliates and multiple sites.
Timeline at a glance
- March 2026: Samsung Vietnam Semiconductor was reportedly established.
- July 2026: 103 Vietnamese engineers reportedly began practical training at Cheonan and Onyang.
- July 2027: Equipment delivery for the Thai Nguyen V1 testing line is planned.
- Q4 2027: V1 testing operation is targeted to begin.
- May 2028: Equipment delivery for the V2 line is planned.
- September 2028: Samsung Electro-Mechanics targets mass production at its expanded Sejong FC-BGA site.
- October 2028: Thai Nguyen V2 testing operation is targeted to begin.
- June 2030: Samsung Electro-Mechanics targets completion and operation of its Vietnam FC-BGA expansion.
What the investment means for Vietnam and Korea
For Vietnam, the plan would add a higher-technology back-end memory operation and a separate package-substrate expansion to an existing Samsung manufacturing footprint. For Korea, the FC-BGA investment reinforces Sejong’s role in advanced packaging while the memory-testing project could change how final testing is distributed across sites. Until Samsung publishes volumes, production qualifications and supplier details, the scale of those effects cannot be quantified.
Frequently Asked Questions
Is Samsung building a memory-chip fabrication plant in Vietnam?
No. The reported Thai Nguyen project is for back-end testing of packaged DRAM and NAND. The reports do not describe a wafer-fabrication facility.
When will Samsung’s Vietnam semiconductor projects start operating?
The Samsung Electronics testing lines are targeted for late 2027 and October 2028. Samsung Electro-Mechanics’ separate Vietnam FC-BGA expansion is targeted for June 2030.
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