Samsung Electro-Mechanics Commits $5 Billion to Vietnam and Korean Substrates

Samsung Electro-Mechanics will invest nearly $5 billion by 2028 in semiconductor substrate manufacturing across facilities in South Korea and Vietnam.

The capital program targets high-end substrates for artificial intelligence servers and high-performance computing systems. Construction is underway in Thai Nguyen province. Samsung is building a dedicated chip testing and component facility there.

Targeting AI server demand

This outlay shifts Samsung’s manufacturing footprint in Southeast Asia toward higher-value component fabrication. Substrates connect bare silicon chips to printed circuit boards. Global capacity remains tight because orders for artificial intelligence hardware are surging.

Data centres and generative model clusters require dense, multi-layer substrate packages that handle high heat and complex routing. Expanding in Vietnam allows the group to split lines between its South Korean base and lower-cost Southeast Asian hubs.

Vietnam’s push into advanced packaging

Hardware assemblers across the region are shifting capital away from standard consumer electronics assembly. They are focusing on advanced packaging, testing, and component fabrication. Other conglomerates are running similar programs, including LG with its $1 billion expansion in northern Vietnam.

Major packaging and substrate plants anchor supply chains for materials suppliers, equipment vendors, and industrial park operators. Thai Nguyen and surrounding northern industrial corridors have evolved from handset assembly clusters into integrated electronics nodes.

Upgrading from smartphone assembly

Vietnam built its initial manufacturing base largely on final-stage assembly of consumer devices and mobile handsets. Samsung has long run major smartphone assembly plants in the country. Producing advanced semiconductor substrates represents a technical upgrade for local operations.

Equipment installation and facility construction will proceed in phases through 2028. The five-year spending plan secures component capacity as enterprise computing demand outpaces consumer electronics.

Capacity rollout schedule

Suppliers must still navigate long equipment lead times and heavy utility demands. Substrate processing requires stable electrical grids and continuous cleanroom operations. These requirements will test regional infrastructure.

Samsung Electro-Mechanics will ramp capacity across both South Korea and Vietnam over the next four years to meet target deployment deadlines by 2028.