Samsung to invest in boosting China NAND chip output

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Samsung aims to invest seven billion US dollars over the next three years in expanding its NAND memory chip production in China’s northwestern city of Xi’an, Shaanxi Province, the South Korean tech giant said on Monday.

In a regulatory filing, Samsung said it approved 2.3 billion US dollars of the expected seven-billion-US-dollar investment on Monday.

In early July, when Samsung announced an investment of 18.6 billion US dollars in South Korea, it said it would add a production line at its NAND plant in Xi’an, but did not set an investment amount.

Samsung NAND flash memory /AliExpress Photo

A Samsung spokesman declined to comment on the amount of capacity to be added by the approved or planned investment.

The firm accounted for 38.3 percent of the global NAND flash memory chip revenue in April-June, the latest data from researcher IHS showed.

China is trying to develop its own memory chip producers but it is likely to be several years before they can compete with existing makers, analysts said.

Samsung said the memory chip boom that propelled it to a record profit in the second quarter was likely to continue in the July-to-September quarter.

Source(s): Reuters