Samsung Electro-Mechanics has announced a significant investment of nearly $5 billion by 2028 to expand its semiconductor substrate production in South Korea and Vietnam, with a particular focus on deepening Vietnam's role in the global semiconductor value chain [1]. The new semiconductor plant, currently under construction in Thai Nguyen province, Vietnam as of May 25, 2026, marks a strategic shift for Samsung from traditional smartphone production to advanced semiconductor manufacturing in the country [1].
This expansion is designed to ramp up the production of semiconductor substrates, which are critical components connecting chips to circuit boards and are essential for servers powering artificial intelligence and high-performance computing applications—sectors experiencing rapid growth and driving increased demand for advanced chips [1]. The move is part of a broader trend, with other multinational companies such as LG also investing in Vietnam's semiconductor sector, including LG's recent $1 billion commitment [1].
Industry analysts cited in the article highlight that Samsung's investment will not only bring advanced manufacturing technologies to Vietnam but also significantly boost the local economy by generating jobs and enhancing technical expertise in the region [1]. The company's focus on high-value components signals a strategic pivot towards more sophisticated and higher-margin production, aligning with global market trends where demand for AI-driven computing power and data centers is fueling investments in advanced semiconductor technologies [1].
Vietnam's government has prioritized the semiconductor sector, offering incentives and infrastructure improvements to attract foreign investment and further establish the country as a key player in the global supply chain [1]. With completion of the new facilities targeted by 2028, Samsung's expansion is expected to play a pivotal role in meeting global demand for advanced chip substrates and further integrating Vietnam into the high-tech manufacturing ecosystem [1].
CONCLUSION
Samsung's nearly $5 billion investment underscores Vietnam's rising importance in the global semiconductor industry and signals a strategic shift towards advanced manufacturing in the region. The expansion is expected to generate economic benefits, create jobs, and position Vietnam as a key player in the high-tech supply chain, especially as demand for AI and high-performance computing continues to grow.