Samsung Electronics to Offshore DDR5 Memory Manufacturing to India, Vietnam, Phillipines

Submission Statement: Samsung Electronics plans to outsource all additional production of conventional memory modules as it focuses its in-house capacity on high-value memory products such as high-bandwidth memory (HBM).

Samsung Electronics’ outsourcing partners are also expanding production facilities in line with the company’s increased outsourcing of memory modules.

Dreamtech, which began mass production of DDR5 modules in India in November last year, is also expanding its production lines. In June, the company approved equipment investment to convert and expand its Noida Plant 1 in India, which had assembled printed board assemblies (PBAs) for smartphones, into a large-scale memory module production line. The expansion work will be completed this month, followed by a gradual increase in production capacity. The plant is ultimately expected to secure annual production capacity of more than 50 million units.

Hanyang Digitech is working to improve productivity at its existing memory module plant in Vietnam. The company invested more than 31.5 billion won in the first half of this year to introduce new machinery and automate production processes.

SFA Semicon is transferring DDR5 testing and module assembly equipment previously used at Samsung Electronics’ Onyang campus to SFA Semicon’s plant in the Philippines. The first phase is scheduled to begin operations in November, followed by the second phase in the second quarter of next year. The move is expected to significantly increase DDR5 final testing and module production capacity. SFA Semicon handles fine-pitch ball grid array (FBGA) packaging of memory chips at its Cheonan plant in South Chungcheong Province and conducts final testing and module assembly at its Philippine plant.