Responding to Chinese Demand
Samsung Electronics announced on August 28 that the company is planning to invest US$7 billion over the next three years to expand its NAND flash memory plant of Samsung China Semiconductor (SCS) subsidiary in Xian, China. The company said, "The plan is aimed at responding to an increase in demand for NAND flashes in the mid to long term."
Samsung Electronics announced on July 4 that the company announced the plan to additionally invest in a semiconductor line of Xian while holding a ceremony to mark product shipments at the Pyeongtaek semiconductor production line in Gyeonggi Province, Korea.
The company plans to build an additional line at the Xian Semiconductor plant, which was completed in 2014 and now has a 100% capacity utilization rate, in response to the Chinese market which is the largest consumer of NAND flashes.
Samsung Electronics held a management committee meeting on that day and confirmed the amount of the investment in the Xian plant. The facility to be newly constructed will become a full-fledged NAND flash production line.
The management committee also approved a US$2.3 billion equity investment.