Samsung to Begin Manufacturing Semiconductor Parts in Vietnam

September 2022

Samsung has just announced that it will commence mass-producing its ball grid array products at its factory in northern Thai Nguyen Province in July 2023, and it is currently at the testing stage.

In addition to preparing for trial production of semiconductor chip grid goods, Samsung has stated that it intends to construct an R&D facility in Hanoi later in 2022 or early in 2023. The R&D facility, according to the corporation, is 85% completed. Nikkei Asia reports that semiconductors would mark a third business for Samsung in Vietnam, where the company manufactures home appliances and 60% of its smartphones.

Samsung Vietnam generated USD 34.3 billion in export revenue in the first half of 2022, a 18% increase over the same period in 2021. As the largest foreign direct investor in Vietnam, Samsung first invested USD 1.3 billion in its electro-mechanics unit in 2013, which makes main boards and other electronic components. The largest memory chip manufacturer in the world had USD 18 billion invested in Vietnam as 2021.

Vietnam also hosts the biggest assembly and testing facility in Intel’s network. In addition to running its business successfully throughout the worldwide chip crisis, Intel came up with a variety of creative solutions to help the industry meet the need for semiconductors. Enhancing the plant’s substrate treatment procedure in Vietnam was one of the main efforts.

According to the general manager of Intel’s Asia-Pacific and Japan area, Vietnam has the ability to develop the essential infrastructure and policies needed to enable cutting-edge manufacturing operations in the semiconductor sector. He also stated that Vietnam is an attractive location for foreign investors, particularly huge IT businesses, because of the country’s stable sociopolitical climate, liberalized trade and investment regulations, and young and skilled workforce.

(Source: VnExpress, Nikkei Asia)

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