Samsung Electronics will invest $8 billion in its Chinese chip plant to boost production of Its Flash Memory chips, according tomedia reports. Samsung’s investment comes at a time when the global memory market is expected to rebound next year. The global memory chip market is expected to rebound next year due to limited supply and rising demand for 5G devices and networks.
Samsung is the world’s largest manufacturer of NAND flash memory chips, which permanently store data and are commonly used in mobile devices, memory cards, USB flash drives and solid-state drives.
Samsung announced in 2017 that it would invest $7 billion in the Xi’an plant, which makes NAND flash memory chips, over the next three years. Samsung had earlier invested $10.8 billion in a testing and packaging plant in Xi’an.
The $8 billion investment is the second phase of Samsung’s Xi’an flash memory chip project, which was previously $10.8 billion for the first phase. The second phase of the project has a total investment of $15 billion, the first phase is about $7 billion and the second phase is $8 billion.
The second phase of the project is expected to be completed in the second half of 2021, when completed, will add 130,000 pieces of production capacity per month, the new output value of 30 billion yuan.
Samsung’s competitors in NAND Flash include South Korea’s SK Hynix, America’s Micron Technologies and Japan’s Toshiba Corp. Several Chinese companies have also tried to enter the market.
In September, Ziguang Group’s Changjiang Storage Technology Co., Ltd. announced that it has begun mass production of 64-tier 256 Gb TLC 3D NAND flash memory based on xtacking architecture to meet the needs of mainstream market applications such as SSDs and embedded storage.