X
Tech

​Samsung begins building $7 billion chip line in China

Samsung Electronics' second line in Xi'an, China, will make V-NANDs to meet high demand in the world's second-largest economy.
Written by Cho Mu-Hyun, Contributing Writer

Samsung Electronics has begun construction of its second semiconductor line in Xi'an, China.

The South Korean tech giant will invest $7 billion in the new line that is expected to be completed next year.

It will produce V-NAND memory chips, which are in very high demand from Chinese vendors.

The company signed a memorandum of understanding (MoU) to build the line back in August, 2017, with Shanxi Province.

Samsung began building its first chip line in Xi'an -- Chinese President Xi Jinping's hometown -- back in 2012. It began producing NAND in 2014 and has grown to account for 20 percent of the South Korean firm's total NAND production. The first line is also being expanded with additional investments.

The South Korean tech giant is squeezing rivals with its massive production output while remaining ahead in the rollout of latest products. Its Pyeongtaek line began production last year.

The Chinese government has given rare benefits to Samsung due to the high demand for memory in the mainland.

The Korean firm enjoys one-stop administrative support and its chip business is a wholly owned subsidiary. the Chinese government usually asks for 50/50 joint ventures for companies on the mainland.

The Chinese government has reportedly told the US that it will purchase more semiconductors from the latter, instead of South Korea and Japan. China and the US are embroiled in an trade dispute, with US President Donald Trump initiating tariffs on Chinese products and restricting Chinese investment in technology "deemed important" to US interests

However, Samsung has near 50 percent market share in NAND, and China has few alternatives for memory chips.

China has vowed to become memory independent going forward. The state-backed Tsinghua Unigroup is investing billions in semiconductors and actively pursuing high-tech firms abroad.

PREVIOUS AND RELATED COVERAGE

<="" p="" rel="follow">

    <="" p="" rel="follow"> <="" p="" rel="follow">

<="" p="" rel="follow">

<="" p="" rel="follow"> <="" p="" rel="follow">Samsung and KDDI complete 5G trial in baseball stadium

KDDI and Samsung used 5G tablets to download and stream live feeds of 4K videos at Okinawa Cellular Stadium in Japan.

Samsung boosts mid-tier Exynos 7 AP with deep learning image processing

Samsung's new mid-tier mobile application processor Exynos 7 9610 has deep learning and faster image processing capabilities and will launch in the second half of 2018.

Samsung adds fingerprint sensor to 8-inch foundry

Samsung Electronics' contract chip-making business now offers six 8-inch wafer solutions, including a RF/IoT and fingerprint sensor, for its customers.

MicroLED patents nearly double in a year in South Korea

MicroLED patents filed in the country, which were close to nil near the end of the last decade, have gone from 67 in 2016 to 120 in 2017.

Beijing to build $2 billion research park as China races to world dominance in AI(TechRepublic)

The park, which could house 400 enterprises, is part of China's larger mission to become a world leader in artificial intelligence by 2025.

Editorial standards