South Korea-based Samsung Electronics announced Monday that it would spend US$7 billion to build a NAND memory chip plan in China.
The plant, which will mark Samsung’s biggest-ever overseas investment in chip production, is reportedly going to be built in the central-China city of Xian. Before Monday’s announcement, analysts had anticipated the plant would cost about half of the $7 billion price tag.
Bloomberg quoted Korean investment analyst Seo Won Seok saying,
“A single factory of this size could be the largest in the industry. For NAND flash, China will be a key production site, along with Korea.”
Fellow chip manufacturer Intel (Nasdaq: INTC) opened its first plan in China, located in the
northeastern city of Dalian, in 2010.