Samsung spending $7 billion to expand memory production in China

Samsung dominates the global memory semiconductor segment and the company wants to consolidate its position further by heavily investing in its production lines. It was reported in March last year that the company had set aside $8.7 billion to build new production lines for NAND flash memory chips in Hwaseong, South Korea and Xian, China.

A new report out of South Korea today claims that Samsung is planning to further expand its NAND flash memory chip line in Xian, China. The company is reportedly doing this in a bid to meet rising demand for its flash memory products.

Expanding memory production to maintain dominance

Rising demand for semiconductors has made it necessary for Samsung to expand its production facilities to maintain its hold over the market. The company decided to invest in a new memory chip production line at its Pyeongtaek, South Korea plant just last month.

The first fabrication line was constructed at the Pyeongtaek plant about two years ago and mass production of Samsung’s fourth-generation V-NAND memory chips began in July 2017.

Samsung is expected to start construction work to expand the manufacturing facility in Xian later this month. Kim Ki-nam, the head of Samsung’s lucrative chip business, is said to participate in the groundbreaking ceremony with Chinese provincial officers. The report mentions that Samsung plans to invest $7 billion over the next three years in this expansion project.

Getting the work started on the new line won’t take up a lot of time as Samsung had reportedly secured the location for the second line when it started constructing the first line at its Xian facility. If the work goes according to plan and there are no significant delays then the company will be able to start production by next year.

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