Samsung planned to build semiconductor plants in China

Published:2011/12/7 21:07:00 Author:Phyllis From:SeekIC

In response to increased demand for NAND FLASH memory used in smartphones and tablet computers, Samsung Electronics, the world’s largest maker of computer memory chips, planned to build a semiconductor factory in China. Following the USA and Germany Texas, This is the second time Samsung set up semiconductor production lines overseas.

The company said the plant will enable it to meets fast-growing demand from its customers and at the same time strengthen its overall competitiveness in the memory industry.

The factory will produce NAND flash used in mobile devices such as Apple Inc.’s iPad and may expand Samsung’s dominance in the $59 billion memory market to store media including photos, videos and applications permanently. Demand for flash memory will climb 49 percent in the five years to 2015.
Samsung chose to build the plant in China because the country is growing as a key chip market. The company is adding capacity while rival memory chipmakers are losing money because prices for DRAM chips have dropped to record lows.

According to market research firm Gartner predicted that the proportion of smart phones produced in China is expected to increase from 37% this year, 48% in 2015, the production of tablet PCs in China this year to reach 96%. With the use of NAND FLASH memory of the proportion of IT equipment production in China increases, the multinational IT companies are in China have demanded direct semiconductor.

Samsung has yet to determine the scale of investment in semiconductor factories and investment areas. Samsung Electronics in the South Korean government’s permission, with the Chinese local government consultations on issues of site selection, planning began in 2012 building the fastest production lines, and put into production in 2013.

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