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Expand production plans! Samsung Electronics considers increasing investment in Xi'an plant

According to BusinessKorea, Samsung Electronics is considering investing in its second, second semiconductor project foundry in Xi'an, Shaanxi Province.

According to sources in the securities and semiconductor industry, Samsung Electronics plans to increase its capital expenditure on memory chip construction to US$6.5 billion next year. It is expected that some of the increased funds will be used in its second semiconductor factory in Xi'an. It is reported that Samsung Electronics will announce this investment plan by the end of this year.

It is understood that although Samsung Electronics' full capacity in Xi'an's first semiconductor factory is fully loaded, it still cannot meet the demand for NAND flash memory supply. In August 2017, the company signed a memorandum of understanding with the Shaanxi provincial government to build a second factory. .

At the same time, Samsung Electronics announced plans to invest $7 billion in the three years to 2020.

At the moment, the NAND flash market is showing signs of recovery, and Samsung Electronics is also motivated. The Nikkei News pointed out that Samsung Electronics will introduce the most advanced NAND flash memory production equipment used in smartphones and other factories in Xi'an. It is mainly supplied to local smartphone factories such as Huawei, and the order amount of equipment is considered to be on the scale of hundreds of billions of yen.

BusinessKorea believes that there is fierce competition between Samsung Electronics, Toshiba, Western Digital, Micron, SK Hynix and Intel in the NAND flash market, although Samsung’s overweight investment and expansion will not have much impact on the market. As other companies are cutting production, Samsung Electronics can also gain more market share.

But the report also pointed out that Chinese and Chinese companies are the largest customers of memory chips, Samsung Electronics is therefore under pressure, because not only to complete the investment before August next year, but also to fully operate this new production line. Lee Se-chul, an analyst at Citigroup, said, "Samsung Electronics is expected to expand its investment to process up to 40,000 wafers per month."

It is worth mentioning that the company's new production line equipment in Xi'an has been installed and commissioned. It is expected to start mass production in February next year.