Samsung Electronics is shifting the production of DDR5 memory modules and SSDs to third-party contractors due to a lack of internal manufacturing capacity. The company is prioritizing its own facilities in Cheonan and Onyang for the testing and packaging of high-bandwidth memory (HBM) and other advanced chip types.
The strategy involves long-term collaboration, with negotiations starting in June 2025. Samsung has requested that partners accelerate the construction of dedicated production lines. While Samsung plans to build a new facility in Onyang and a testing plant in Vietnam, these projects will take several years to complete, limiting the expansion of internal module production.
Contractor Dreamtech is expanding its operations in India, converting a smartphone PCB factory to produce DDR5 modules. The facility is expected to reach an annual output of over 50 million units. Hanyang Digitech has invested $22.7 million in its Vietnamese plant to automate processes and improve efficiency during the first half of 2026.
SFA Semicon is relocating equipment from Samsung's Onyang site to its facility in the Philippines. Production at the Philippine plant is scheduled to begin in November 2026, with further capacity expansion planned for the second quarter of 2027. The company's Korean division will continue to handle FBGA chip packaging for these modules.
