Samsung Starts Building $7 Billion Semiconductor Line in China

Samsung Electronics finally began the construction of its second semiconductor line in the City of Xi’an, Shaanxi Province. Samsung invests $7 billion in this line and is expected to be finished in 2018.

When finished, the line will produce vertical NAND (V-NAND) memory chips. These chips eliminate performance and reliability issues from capacity limitations. Also, the chips are in very high demand from Chinese vendors.

Back in August 2017, Samsung and Shanxi Province both agreed to the terms by signing the memorandum of understanding (MoU) in order for the company to build the line.

Samsung began building its first chip line also in Xi’an last 2012. Samsung’s creation of NAND chips started in 2014, and has now grown to 20 percent of its total production. Also, additional investments helped in developing the line.

With this, Samsung is squeezing rivals with its massive production output. As a result, the company remains ahead in the rollout of latest products. Its Pyeongtaek line in Gyeonggi Province began production last year.

The Chinese government has given few benefits to the company due to the high demand for memory in the mainland. The Chinese government usually asks for 50/50 joint ventures for companies on the mainland. The South Korean tech giant Samsung enjoys government support and its chip business is a wholly owned subsidiary.

In addition, the Chinese government has reportedly told the US that the government will buy more semiconductors from the US instead of its neighboring nations South Korea and Japan.

US President Donald Trump initiates tariffs on Chinese products and prohibits Chinese investment in technology ‘deemed important’ to US interests, and takes China to the World Trade Organization (WTO) for discriminatory technology licensing practices which results in a trade dispute between China and the United States.

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

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


Samsung Electronics’ Semiconductor Technology: The Future of Innovation

Samsung's Advance Semiconductor Innovation

Samsung’s Advance Semiconductor Innovation

Decades-long technology innovation and expertise of the company enables new and exciting features for today’s advanced mobile devices. It includes built-in innovative semiconductors and LED solutions. This feeds human’s continuous search for advancement in the current technology.

At this point in time, Samsung provides people the widest range of semiconductors and LED solutions to meet the ever-increasing requirements of the mobile industry. According to the South Korean tech giant, they will never stop in developing and providing people with advanced semiconductor and LED technologies. This development will provide better performance, capacity, functionality, and energy efficiency as the technology, as well as mobile phones, continue to evolve.

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