Samsung Affiliates Invested Trillions in Chip Capacity
The electronics giant is expanding memory chip testing and substrate manufacturing across South Korea and Vietnam.
Updated on Oct. 11, 2026 in Semiconductors
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Samsung affiliates have committed 12.26 trillion won to bolster chip operations, aiming to meet growing demand for AI servers. The investment involves memory testing facilities in Vietnam and expanded substrate production capacity in South Korea.
Why it matters
This strategic expansion allows Samsung to scale its chip testing and substrate capacity while optimizing its global supply chain. By prioritizing high-value production in Korea, the company intends to maintain its competitive edge in advanced semiconductor markets.
Samsung Electronics plans to invest 105.79 trillion Vietnamese dong into memory testing facilities, while Samsung Electro-Mechanics is allocating 6.78 trillion won toward flip-chip ball grid array substrate capacity.
The players
Samsung Electronics
This is a South Korean multinational corporation and one of the world's largest manufacturers of electronic devices and semiconductor components.
Samsung Electro-Mechanics
This company is a subsidiary of Samsung Group that specializes in the production of electronic components, including circuit boards and substrates.
The details
Samsung will split its substrate investment, directing 4.27 trillion won to Sejong, Korea, and 2.51 trillion won to Vietnam. Sixty-three percent of the Vietnamese project will be financed through the reinvestment of local profits, supported by commitments from global clients.
Timeline
Samsung Electro-Mechanics announced its investment plans on September 29, 2026.
The first production line in Vietnam is scheduled to start in the fourth quarter of 2027.
A second production line in Vietnam is planned for 2028.
Mass production at the Sejong facility in Korea is set to begin in September 2028.
The substrate expansion in Vietnam is targeted for completion by June 2030.
The Tech Race
This investment aligns Samsung with the industry-wide push to scale infrastructure for AI server hardware production. By increasing substrate capacity and testing throughput, the company aims to secure its position against rivals competing for dominance in the high-performance AI chip market.
These improvements in manufacturing and testing capacity will likely increase the availability of high-performance memory chips for data centers and commercial devices. Readers should anticipate more stable supply chains for high-end consumer electronics that rely on advanced semiconductor components.
The takeaway
Samsung is balancing its manufacturing footprint by keeping high-value production in Korea while localizing assembly in Vietnam. This geographic diversification serves as a risk-mitigation strategy to better manage global order volumes.
Further reading
Find more industry updates on our Semiconductors page.
Source note: This article includes information reported by The Korea Herald.
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