Samsung augments investment in Xi’an

Source:Global Times Published: 2017/9/20 21:38:40

Despite cooling economic activities between China and South Korea affected by diplomatic strains, South Korean technology giant Samsung Electronics Co recently announced a $7 billion investment in Northwest China's Shaanxi Province to enlarge output.

Xi'an authorities signed an agreement with Samsung on August 30, announcing that the South Korean company plans to build a second phase of its memory chip plant at the city's Hi-tech Industries Development Zone, with a confirmed investment of $7 billion, said a press release the company sent to the Global Times on Wednesday.

Early in 2012, Samsung invested in the first phase of the memory chip project in Xi'an, capital of Shaanxi Province. Worth $10 billion, the project became the company's largest program overseas, and also the biggest foreign-funded project in China's electronic information industry since the country's reform and opening-up policy in the late 1970s, according to the document.

Samsung's factories in Xi'an have boosted the emergence of the whole semiconductor industry. Since the completion of the first phase in May 2014, the project has drawn more than 100 supporting companies to the area, it continued.

Thanks to Samsung's drive and radiation effect, other companies at the upper and lower ends of the industry chain can share convenient facilities to reduce costs, local newspaper Shaanxi Daily reported earlier this month.

Samsung's increased investment is expected to help the zone forge an industrial cluster worth hundreds of billion yuan and cement the city's position in the global semiconductor industrial base.



Posted in: COMPANIES

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