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Samsung Electronics Breaks Ground on Second Line at Xi'an Semiconductor Facility in China
Will strengthen competitive advantage in the Chinese market where NAND flash demand is concentrated
Samsung Electronics will construct a second production line at its Xi'an semiconductor facility in China to respond to increasing 3D V-NAND demand.
On March 28 morning, Samsung Electronics held a groundbreaking ceremony for "Samsung China Semiconductor Memory Line 2" in Xi'an, Shaanxi Province, China, attended by Hu Heping, Communist Party Secretary of Shaanxi Province, Miao Wei, Minister of Industry and Information Technology, Liu Guozhong, Governor of Shaanxi Province, Noh Young-min, Korean Ambassador to China, Lee Kang-kook, Consul General in Xi'an, and Kim Ki-nam, President and Representative Director of Samsung Electronics, among others.
In August 2017, Samsung Electronics signed an MOU with the Shaanxi Province government for investment in the Xi'an semiconductor Line 2 facility and committed to investing a total of $7 billion over the next three years.
Through this development, Samsung Electronics plans to establish a second semiconductor production line in Xi'an to actively respond to global IT market demand for NAND flash (V-NAND).
Samsung Electronics President Kim Ki-nam stated in his commemorative address, "Through successful operation of the Xi'an Line 2 facility, we will produce the highest-quality memory semiconductor products and provide differentiated solutions to customers, continuing to contribute to global IT market growth."
In particular, through this additional Line 2 investment, the company expects to further strengthen manufacturing competitiveness in the Chinese market, which is both the largest demand center for NAND flash and where global mobile and IT manufacturers concentrate their production facilities, and to respond more smoothly to Chinese market requirements.
Additionally, this additional investment is expected to bring positive ripple effects to the regional economy of Xi'an and Shaanxi Province as well as to China's western industrial development. Samsung Electronics' Xi'an semiconductor facility has been pursuing steady investment starting with the Line 1 groundbreaking ceremony in 2012, followed by establishment of an electronics research institute in 2013, mass production of first-generation V-NAND in 2014, completion of backend process line in 2015, and expansion of Line 2 in 2018.
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김지혜 Reporter













