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Samsung to start producing chip parts in Vietnam

August 9, 2022 5:23 am

Samsung will begin making semiconductor parts in Vietnam in July 2023, Nikkei Asia reported.

The South Korean giant is now testing ball grid array products and intends to mass produce them at the Samsung Electro-Mechanics Vietnam factory in northern Thai Nguyen Province, according to a post that showed up late on Friday on Vietnam's official government website. Much of the post was shared verbatim on Samsung's site.

Semiconductors production will mark Samsung's third business in Vietnam, where the company already makes home appliances and half of its smartphones.

Samsung's latest move shows its determination to diversify its supply chain. In recent decades, Samsung, which controls 35.3% of the worldwide NAND flash memory chip industry, has made substantial investments in China to manufacture chips.

Since 2012, the giant has cumulatively invested about $26 billion in its memory chip factory in Xi'an, central China. According to TrendForce data late last year, the facility accounts for 43% of Samsung's global NAND flash memory production capacity and 15% of the overall global output capacity.

The increasing rivalry between China and the US, especially in the chip sector, has triggered a structural shift in the supply chain, forcing chipmakers like Samsung and SK Hynix to re-review their investment strategies in China.

Last Monday, Reuters reported that the US was considering restricting exports of US chip-making equipment to memory chipmakers in China. The restrictions will also have an impact on the two South Korean giants, preventing them from shipping new technology tools to factories operating in China.

Samsung also plans to open a $17 billion foundry chip plant in Texas.